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Old 18th September 2013, 17:25   #46
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Default Re: The great domestic LPG connection scam

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(now even the ration card is an extinct hing I guess).
The ration card is not extinct.

Some facts:

I am not aware about other states but in Karnataka, it is issued as APL (Above Poverty Limit) and BPL (Below Poverty Limit).

The BPL holders are getting 30 Kgs of rice per month @ Rs. 1 per Kg. (For this, the Karnataka Govt. buys rice @ Rs. 23 per Kg and subsidises Rs.22 for BPL card holders). Our domestic help mentioned the other day that the ration shop owner offers to buy back the rice at Rs. 14 per Kg and he sells in open market at Rs. 25 per Kg.
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Old 28th December 2015, 16:41   #47
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Default Re: The great domestic LPG connection scam

LPG subsidy withdrawn for those having over 10 lac taxable income. This is like penalizing those paying tax honestly, and rewarding those not declaring their income.

http://pib.nic.in/newsite/mbErel.aspx?relid=133955
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Old 28th December 2015, 17:27   #48
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Default Re: The great domestic LPG connection scam

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LPG subsidy withdrawn for those having over 10 lac taxable income. This is like penalizing those paying tax honestly, and rewarding those not declaring their income.

http://pib.nic.in/newsite/mbErel.aspx?relid=133955
This was the only direct subsidy that the salaried , slight affluent class was getting. I have no problems giving up the subsidy but at least give me something for the money I pay as taxes in various forms (income, VAT, service tax, excise , road tax, property tax, garbage cess, clean india cess, education cess). But I get nothing. No roads or only tolled roads. No water leaving us at the mercy of water mafia. No garbage collection in big apartments again leaving us at the mercy of garbage mafia.
The entire exercise of linking aadhaar etc was solely for this purpose I believe so that they can identify the honest tax paying citizens and harass them further.
You either have to be poor (you get all subsidies) or politically connected rich (you make money from scams out of public money) in this country. If you are a salaried, not politically connected person in this country, the govt will take your underwear and arrest you for public indecency.
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Old 28th December 2015, 19:14   #49
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Default Re: The great domestic LPG connection scam

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This was the only direct subsidy that the salaried , slight affluent class was getting. I have no problems giving up the subsidy but at least give me something for the money I pay as taxes in various forms (income, VAT, service tax, excise , road tax, property tax, garbage cess, clean india cess, education cess). But I get nothing. No roads or only tolled roads. No water leaving us at the mercy of water mafia. No garbage collection in big apartments again leaving us at the mercy of garbage mafia.
The entire exercise of linking aadhaar etc was solely for this purpose I believe so that they can identify the honest tax paying citizens and harass them further.
You either have to be poor (you get all subsidies) or politically connected rich (you make money from scams out of public money) in this country. If you are a salaried, not politically connected person in this country, the govt will take your underwear and arrest you for public indecency.
Very true. The government just keeps adding more and more burden to the salaried class which pays most of the taxes to keep giving subsidy to the poor. I support the decision to support those with real need with subsidy but this is just another easy move for the government rather than doing it the proper way by increasing the overall Tax compliance.

The government has got the salaried class by the neck and is intending to keep squeezing to extract more and more not for real need but to cover up the deficits from its scams and inefficiencies.

What do the tax payers get for giving everything? Pot-holed roads, traffic jams caused by non-working signals in junctions, unreliable power, unreliable water,flooded streets during rains, over-crowded public transports, made to run from pillar to post in govt offices etc etc.
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Old 28th December 2015, 19:44   #50
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Default Re: The great domestic LPG connection scam

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What do the tax payers get for giving everything? Pot-holed roads, traffic jams caused by non-working signals in junctions, unreliable power, unreliable water,flooded streets during rains, over-crowded public transports, made to run from pillar to post in govt offices etc etc.
Most things that you have quoted are under the State's umbrella. If there is an issue in it, it should be addressed by the state.

Unfortunately everyone's focussing on the Central's performance while giving a free reign to the state.

I see it happening in both KA,TN.

An addition of 5K in a year to a person earning 10L in a year isn't going to be an issue. Only problem I see is how the 10L is going to be identified.

Those who don't do IT filing regularly might get under the radar and continue to use it unfairly.

But it has to start somewhere and it is a good move IMO.
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Old 28th December 2015, 20:08   #51
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But it has to start somewhere and it is a good move IMO.
Yes, this cross-subsidization is a good move and I think legally tenable also. Rs 10 lakh TAXABLE income is a big amount and for such people, forego of subsidy of Rs. 1500 a year will hardly matter. Rather I think that the threshold should be lowered progressively in future. But as far as implementation is concerned, there will be extra wprk burden on IT departments.
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Old 29th December 2015, 12:55   #52
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Default Re: The great domestic LPG connection scam

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LPG subsidy withdrawn for those having over 10 lac taxable income. This is like penalizing those paying tax honestly, and rewarding those not declaring their income.

http://pib.nic.in/newsite/mbErel.aspx?relid=133955
How will they ascertain who earns more than 10 lakhs per year?
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Old 29th December 2015, 12:59   #53
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How will they ascertain who earns more than 10 lakhs per year?
They will link the PAN to LPG consumer no. Though it is not clear to what extent they already have this data base.

Source: http://epaperbeta.timesofindia.com/A...29122015001033

Last edited by ajitstreet : 29th December 2015 at 13:04.
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Old 29th December 2015, 13:26   #54
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Default Re: The great domestic LPG connection scam

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How will they ascertain who earns more than 10 lakhs per year?
your form 16, how else?

But though I was shocked when I read the morning paper, but I believe this would be good in the long run, its just couple of 100 bucks we will end up paying extra but ultimately people who take undue benefit would get caught as well.

Like people have mentioned above, somewhere it needs to start, I remember, people used to get multiple cylinders and sell them in black to people at 2000 Rs a cylinder, now things are much better, though it takes close to 2 months to get a refill, it have definitely improved from the 4-6 months wait before the 12 cylinder per year rule.
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Old 29th December 2015, 14:32   #55
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Default Re: The great domestic LPG connection scam

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How will they ascertain who earns more than 10 lakhs per year?
Well, they're gonna rely on something known as "income tax returns" , in a country where less than 3% pay income tax. How reliable . On a more serious note, they may use the Aadhar/Pahal linkage for subsidy credit, although such measures will take time to develop.

It may also take a few electoral defeats - 2016 will see several states going to elections - to revert such measures. On the other hand, the government may also say, pay double on railway fares if you earn more than 10 lacs, furthering the income based divide in society.

In the absence of economic growth and job creation, all governments can do is to rob Peter to pay Paul.

Btw, the subsidy is around Rs 200/- now, but it will be a lot more when oil prices rise.

Last edited by sdp1975 : 29th December 2015 at 14:35.
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Old 29th December 2015, 15:19   #56
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Default Re: The great domestic LPG connection scam

Actually, it IS (or rather has been for democratic reasons) Govt's role to rob Peter to pay Paul always!

But using Form-16 to demarcate who pay market rate vs who pays subsidized rate is laughable.
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