What use income tax ?
Is it the purpose of income tax to perpetuate poverty or earn decent revenue for a democratic welfare state? The IT and other tax laws were promulgated by the British government to fleece the people of India, a colony then, to raise the living standards of the British people leaving barely adequate for the Indians to consume to survive. This mentality of a foreign government (colonial power) was best symbolised by tax on edible salt, which contributed 25% to the British revenues, but which happened to be the substitute for vegetables for the masses here! As the Indian people paid it, the British also fixed quantities for its consumption, which popularized the phrases Namak Halal & Namak Haram. It encouraged the colonial government to impose all kinds of other taxes most unreasonably e.g. customs, excise, sales, estate, wealth etc. This ‘sinful’ practice, most unfortunately, has been continued by the successor governments, who only added to the harshness. The gist of all the tax laws put together is that Indians are not encouraged to consume adequately (liberally/luxuriously is taboo), impacting adversely economic progress of the country as more than 98% lawful income earners are left with zero or little surplus to consume goods/services (industrial particularly). It has other unwelcome ramifications: low entrepreneurship growth, innovation, unethical practice (corruption), poverty. Had the tax laws been rational, we would not have seen the largescale suffering of the artisans in India due to lockdown. If “skilled” workers suffer so badly even after 73 years of independence and more than a100 years since start of industrialisation, there is something seriously bad in the state of India. Indian tax laws need to be rationalised urgently to stimulate consumption and economic growth. Unless people have enough to buy essentials for growth of the individual and society such as a computer, smart phone, refrigerator, two/four-wheeler, a modest flat, ordinary furniture essential for use like study table etc. under the age 30 years, India can never breach the vicious circle of poverty. Peeling of the veneer of the Fabian ideas of Pt. Jawaharlal Nehru has been overdue. Let people feel proud to pay tax unlike the current scenario in which the smart fellows dodge tax regime with a smirk leaving the law abiding feel low. Even now, the superrich manage not to pay any tax, the proletarian filling the revenue gap for them.
M L Gupta
M L Gupta