Today I met a friend and while discussing I realized he is hiding something. Somehow he opened up and what he said compelled me to write this article.
He is a middle class salaried person and we were discussing savings and impact of GST on individual. I tried my level best to convince him the benefits of tax and how things are improving using technology. He had few simple questions that actually can be answered by government of the day. He said our life is like a Sugarcane in a juice machine. It is put into the machine to squeeze even the last drop.
If Jandhan Yojna, Mudra, LPG Subsidy and LPG booking are successful, why can’t government focus on collecting Taxes from small businesses.
Salaried class are identified from distance. There is no mercy here. No matter who you are. You are not asked to pay, the money is deducted before salary disbursement and is called TDS (Tax Deducted at Source). Instead of thank you the employer gives form 16 on behalf of the government.
Insurance company sales team and their marketing team are most active from the period December to March period. This is that time of the financial year when employees are supposed to give their investment details to save tax.
Other class of tax payers are the the ones who are in business.
Then there is a class of small business that earn handsomely we all know but rarely pay taxes.
These are WALA. While this is more associated with hard working Parsi surnames. This has big connect with our daily life as well.
These are as commonly identified as:
- Securitywala the list is long. This is one class that has sizeable income and hardly pay taxes.
Let us do a small case study. Let us take PaanWala for the sake of it.
A PaanWala on an average place in a city has minimum footfall of at least 250 customers. Customers spend are INR 7 /- for a ganesh beedi bundle, INR 4 for a Calcatta Saada paan, INR 13 for a large single stick of cig. Basically, the PaanWala is earning a minimum of INR 2000/- per day. He definitely falls in taxable bracket.
How many PaanWala in the past, during UPA two tenure paid taxes. How many in existed government paid taxes in the current government? This is one question that needs to be answered. The government should use Digital India in this area as well and engage this section of the society.
The current government is working on this from December 2014 onwards. Now that a huge data base of Jandhan and LPG subsidy account is available with the government. Government should use it’s MIS to identify the income level of each individual and get them to pay taxes. It should focus on PAN cards and use Central Board of Direct Taxes to bring this class under the tax ambit.
Until then the salaried will continue to feel like a Sugarcane in a juice machine.
Pic Credit: indianyouth.net weloveourbangladesh.blogspot.com