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Old 9th May 2015, 02:16   #31
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http://m.economictimes.com/news/econ...w/47204174.cms
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Old 11th May 2015, 13:48   #32
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Default Re: Taxes: How much do we really pay the Government in India?

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Originally Posted by Jakku View Post

What is in the Proposal ?
“Arthakranti Proposal has FIVE point of actions simultaneously.
  1. Scrap all 56 Taxes including income tax excluding import duty.
  2. Recall and scrap high denomination currencies of 1000, 500 and 100 rupees.
  3. All high value transaction to be made only through banking system like cheque, DD, online and electronic.
  4. Fix limit of cash transaction and no taxing on cash transaction.
  5. For Govt. revenue collection introduce single point tax system through banking system – Banking Transaction Tax (2% to 0.7%) on only Credit Amount
I am all in for such a system, since it will mean vastly less useless govt regulations and taxation laws. And whenever this has occured, it has only lead to economic prosperity of everyone.

Also I never ever understood the need for having ultra large currency notes.

Today almost everyone accepts credit cards, debit cards, e-transfer.
Yesterday everyone accepted bank drafts and cheques.

Why was there ever a need to have 500 and 1000 rupee bank notes?
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Old 18th August 2015, 10:35   #33
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Another fun statistic to keep the thread alive.

The globally acceptable standard for taxation is about 20% of GDP.

In India its 15% right now . Not really low considering 3-4% of direct tax base .

In Pakistan its 10% barely.
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Old 18th August 2015, 11:21   #34
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Default Re: Taxes: How much do we really pay the Government in India?

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Originally Posted by drsingh View Post
Another fun statistic to keep the thread alive.

The globally acceptable standard for taxation is about 20% of GDP.

In India its 15% right now . Not really low considering 3-4% of direct tax base .

In Pakistan its 10% barely.
The GDP, when they calculate, do they ascribe a monetary value to the household work done by "housewifes"?
I have a feeling that they don't but really speaking they should.
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Old 18th August 2015, 11:34   #35
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Originally Posted by alpha1 View Post
I am all in for such a system, since it will mean vastly less useless govt regulations and taxation laws. And whenever this has occured, it has only lead to economic prosperity of everyone.
So, ultimately poor, middle class and rich pay the same tax isn't?
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Old 26th August 2015, 15:21   #36
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http://m.economictimes.com/news/econ...w/48550055.cms


Some relief from the constant rise in service tax.
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Old 7th November 2015, 15:24   #37
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Bumping the thread with the fresh 0.5 % swatch bharat service tax cess. And increased excise on petrol and diesel.

http://www.livemint.com/Politics/dD5...sel-by-40.html


I have no qualms about the swatch bharat cess. Maybe it will lead to more citizen activism with people demanding the concerned sarkaari departments /officials for better waste disposal.

http://m.ndtv.com/profit/swachh-bhar...t-more-1240928

Happy Diwali (For the government!)

Last edited by drsingh : 7th November 2015 at 15:28.
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Old 9th November 2015, 20:21   #38
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Default Re: Taxes: How much do we really pay the Government in India?

http://profit.ndtv.com/news/economy/...petrol-1241794


Taxes exceed the actual retail price of petrol.
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Old 9th November 2015, 20:45   #39
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Default Re: Taxes: How much do we really pay the Government in India?

I will put a somewhat humorous twist to it. We are mistaken in assuming that we live for ourselves. We all work for the state which leaves us with some money for ourselves. Let is revert back to the heyday of socialism - Income tax peaked at 93 (or was it 97) percent!!
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Old 9th November 2015, 21:18   #40
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Default Re: Taxes: How much do we really pay the Government in India?

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I will put a somewhat humorous twist to it. We are mistaken in assuming that we live for ourselves. We all work for the state which leaves us with some money for ourselves. Let is revert back to the heyday of socialism - Income tax peaked at 93 (or was it 97) percent!!
If they'll allow me to deduct expenses (Rent,transport,food,healthcare,education,charity etc.) ,maybe i'll be okay with a high tax rate like that.
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Old 7th December 2015, 10:57   #41
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Default Re: Taxes: How much do we really pay the Government in India?

Govt has started the levy of 0.5% Swacch Bharat Cess on Service Tax from 15.11.2015. So brace yourself for a increase in your bills.

Earlier they had subsumed Education & Higher Education Cess and made the rate as 14% (up from 12.36%). It will now be 14.5%.

Wonder who is accountable for all these cess / levy collected from us - by nature the amount collected through this is to be used for the specific purposes for which they are collected.....

BTW, I recollect that Govt. of Maharashtra had imposed a drought tax on petroleum product. Am I right? If so, is this money really being used for drought relief? Can anyone throw some light on this??

Last edited by vrprabhu : 7th December 2015 at 10:59. Reason: Grammatical Error
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Old 7th December 2015, 11:02   #42
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Default Re: Taxes: How much do we really pay the Government in India?

We pay about 30-34% Income Tax.
From the indirect tax perspective we pay around 25-26% for example when we eat out.
We pay about 14-15% VAT etc.

Effectively, we end up working half of the year for ourselves and half of the year for the Indian Government. And we get nothing as an ROI on this investment.

Truly, we are the unfortunate many, who are cursed to live in the midst of such a corrupt system!
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Old 7th December 2015, 11:29   #43
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Default Re: Taxes: How much do we really pay the Government in India?

And when you add inflation to it, it gets a lot worse.
Makes me want to buy a piece of land and live of that land, grow my own fruits / vegetables water etc and insulate myself from this system as much as possible.
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Old 7th December 2015, 13:50   #44
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Default Re: Taxes: How much do we really pay the Government in India?

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Originally Posted by shankar.balan View Post
We pay about 30-34% Income Tax.
From the indirect tax perspective we pay around 25-26% for example when we eat out.
We pay about 14-15% VAT etc.

Effectively, we end up working half of the year for ourselves and half of the year for the Indian Government. And we get nothing as an ROI on this investment.
Hmmm ... I think different. The 30% is at the highest slab of Income. If a person has an annual income of Rs 1500000.00, as per the slab system, his tax will be Rs. 345050.00 which is just 23% of his income. This includes the education cess of 3%. You can try this with any Tax calculator available online. This calculation does not include tax rebates under various sections like Home Loan, Medical, Infra Bonds, Insurance etc. ...
Adding all these sections will bring down your total tax liability. So, in effect, the Govt still only gets close to 20% of your earnings.


It is far less than what people in other countries like US/UK/Australia pay but it is still more than countries like Singapore/Dubai.
Now about the VAT and Service Charges ... even if we eat out say 100 times a year, we will end up paying around 14 - 15 % of the amount we spent, right?

This is for a salaried employee but the calculation gets tougher if you look at a businessman's income. I have seen and heard, how many businessmen try and navigate through myriad amount of loopholes to avoid paying even 15% of their total income. That's why the Govt. always fall short of their collections. I think the proposed GST solution could help Govt. to address some of the shortfall. It could also alleviate our concerns of VAT/Service Tax/Cess etc. ... there will be one fixed rate for all transactions and it will be transparent.

All in all, Govt may not be over charging us in terms of taxes but they definitely underpay us in terms of services rendered for e.g. bad roads, water shortage, garbage issues etc. And that, I feel, make many people try and avoid taxes. Anyway, that's a different debate which I attribute to inefficiency and incompetency of many in the Govt. machinery.

In India: we have freedom, security and dignity of life for which the tax we pay to the Govt is justified.
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Old 7th December 2015, 14:22   #45
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Default Re: Taxes: How much do we really pay the Government in India?

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I am not an economist and the least I understand is economics. However, one of the fantastic article I have come across. Read it though it's long.

Mr.Arun Bokil , one of the key member of Arthakranti Sansthan was given time to share to PM Modi before recent election. He was given 9min for sharing but Mr Modi heard him for 2 hrs.

Arthakranti Proposal

What is in the Proposal ?
“Arthakranti Proposal has FIVE point of actions simultaneously.
  1. Scrap all 56 Taxes including income tax excluding import duty.
  2. Recall and scrap high denomination currencies of 1000, 500 and 100 rupees.
  3. All high value transaction to be made only through banking system like cheque, DD, online and electronic.
  4. Fix limit of cash transaction and no taxing on cash transaction.
  5. For Govt. revenue collection introduce single point tax system through banking system – Banking Transaction Tax (2% to 0.7%) on only Credit Amount
Important Points to note:[list=1][*]As on today total banking transaction is more than 2.7 lakh crores per day say more than 800 lakh crores annually.
To start with, it states the basic purpose of it being it will eradicate black money. But look at the suggestions, and the only thing this will encourage is Black money.

Remember the days when you walked into a shop to buy something and then asked for a bill and the reply was "do not take the bill and I give you x% discount"?
This proposal only encourages that. Pay cash, get additional discount. Once the money is withdrawn (and taxed) from the account by us mortal tax payers who always receive money in banks, it is not going back to the bank for sure. Businesses will keep rotating this tax free n number of times.

Those figures of 2.7 lakh crores banking transactions per day are nothing. They happen as they aren't taxed. Be thankful that these are in the sytem as white money. Once taxed, it wont take time for this figure to halve.

Quote:
Originally Posted by sukhoi30 View Post
It is far less than what people in other countries like US/UK/Australia pay but it is still more than countries like Singapore/Dubai.
Now about the VAT and Service Charges ... even if we eat out say 100 times a year, we will end up paying around 14 - 15 % of the amount we spent, right?
Agreed. In UK it is close to 40%. But have you even looked at what they get in return?
To give an example, government hospitals in the UK are top class, with the best doctors, best equipment and best services. As a tax payer, you do not have to pay a single penny when you walk in and walk out of the government hospitals for any thing, it can be as small as a cough or it can be a surgery.

Government hospitals in India? Nope. Apart from paying the taxes, we also buy expensive premiums on health insurance for when the need arises, and when it does arise, we do not even get the full amount. But thats OT. Point being, please do not compare with the higher taxing countries who offer much more value to the countrymen.

And we have not even added the property tax we pay every year. Has anyone changed house recently? 6-7% of the agreement value as registration charges. so anywhere between 3-6 lakhs just for the municipality to register that property from previous owner to new owner.

Sorry to vent it out like this here, but it is that time of the year where we salaried people take stock of how much tax we already paid & how much more we have to pay, which easily makes up for the down payment and the future TDS would easily cover the EMI's, but we do not get to do it that way.

More frustrating because >70% of this money will be wiped out in corruption, filling some dirty politicians coffers when I deny myself the hard earned luxury of a new car.

Last edited by vinit.merchant : 7th December 2015 at 14:37.
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