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There are certainly more than 5000 people in the super rich category. They just don't pay taxes today.
I understand the focus on tax compliance but the change is too slow simply because the system aids them today to evade taxes.
I understand the focus on tax compliance but the change is too slow simply because the system aids them today to evade taxes.
Taxing the current 5000 super rich is a punishment to those who are truthful in paying taxes today.
Also, in the larger scheme of things, the money is not going to be enough for anything meaningful. It just makes a good, theoretically logical point.
Also, in the larger scheme of things, the money is not going to be enough for anything meaningful. It just makes a good, theoretically logical point.
India should be a classical case of reducing tax rates. Simply because the opportunity on increased tax compliance is enormous. Unfortunately, we are seeing increased tax rates with increasing tax base.
The reason it does not happen is because most of our tax money is wasted. A simple example is a road that is built every month and washes away with the first rains. We waste tax money building a road multiple times whilst it should have been done only once.
The same repeats with every other infrastructure spend where maintenance spend keeps adding to the capital spend. From planning to execution, the system is broken.
Our tax money also goes to support dying and unproductive assets - banks, airlines, govt institutions. There is not a single example where the govt could resuscitate a dying company. Market and competitive forces are simply too strong to beat.
Better products, services, technology, customer orientation determine the fate of companies. Not nationalistic fervour. Again, it makes for just great theoretical feel good, nothing else.
Like everything else, running an economy is about making hard choices. We can never make everyone happy. If we don't shut off unproductive assets, over time, the productive assets will shut down due to the pressure to bear the load.
The tax payers do not get anything for doing their duty towards the country. No roads, no water, no sanitation, pollution, no security, no reservations, no safety net for retirement, no medical benefits, no nothing.
Govt needs to build accountability, integrity and honesty, and accountability at every level - top to bottom. Not an easy task but no other way to run the country. We have seen enough cases (Enron, Satyam) where poor governance collapsed the companies. Same applies to countries.
We may not like it but the govt machinery still does not work to a large extent. Accountability is so missing.
If we want change, accountability needs to come from the top. All the way to the bottom.
If we want change, accountability needs to come from the top. All the way to the bottom.
A simple example - broken, flooded roads. Citizens keep complaining, nothing happens. Why is the municipal engineer not worried? Why is his boss not worried? The PM and ministers read about it but why are they not worried? Why not ask the depts to do their jobs and do them well?
The answer to that question is complex - vested interests, greed, apathy, misplaced priorities - they all play a role.
Govt needs to pursue a focused agenda -
1. No wastage of tax money - build a road that lasts 10 years and not 1 month
2. No leakage of tax money - no one can prove but everyone knows
3. Nation bigger than govt companies - close them is they are unproductive
1. No wastage of tax money - build a road that lasts 10 years and not 1 month
2. No leakage of tax money - no one can prove but everyone knows
3. Nation bigger than govt companies - close them is they are unproductive
4. Improve accountability at all levels. Govt employees need to do their jobs well. In a private company, you don't do well - you are out in a few months. No such worry for govt employees. Job security is misused today - to the nation's detriment.
5. Swift redressal of citizen complaints and issues. At least, try and do it. Show the intent.
Simple ways to build accountability - let govt depts ask citizens 3 simple questions?
1. Are you happy with dept's work in your community?
2. Do you understand the process to get work done in a govt dept? Is it simple?
3. Have you paid to get work done in a govt institution?
1. Are you happy with dept's work in your community?
2. Do you understand the process to get work done in a govt dept? Is it simple?
3. Have you paid to get work done in a govt institution?
Today, the words 'govt servant' is seen as an oxymoron.
We are fast approaching the point of no return. Economy slowing down, finances messed up, scams coming out, agitations, no jobs, clamour for reservations. Everything seems dysfunctional. Once we cross the line, no amount of intent will be able to turn around the economy.
