Taxation is a very important issue to be fixed in India. The only people really paying taxes are the salaried middle class. The middle class alone cannot carry the tax burden of the country, when huge expenses like defence spending (126 new fighter jets, submaries, expense of a million strong army), infrastructure, education, and health look so large for the country.
The Indian tax code is in terrible shape. Why is there so much black money floating around? To keep it out of the hands of the taxman. People who want to pay in white cannot because the recipient won't take it all in white, so constantly money keeps flowing into the underground black economy as white money gets converted to black money when paid as cash for homes, cars, etc.
The Indian tax code needs to be fixed. But it cannot be fixed while the government, ministers, police are corrupt and the judicial system does not work.
Governmental and political corruption and judicial uselessness are grotesquely huge challenges for India that will not be easily solved because Indian politicians in general are corrupt, they are enabled by corrupt bureaucracy and police, and they rely on the ineffectiveness of the courts to escape the laws that do exist. Those in our country who have the power to make these changes are motivated to not make them.
The only hope is that as the economy grows and citizens and businesses gain power, they will gain enough influence that politicians who do the right thing are rewarded and they start to drive change.
How many people do we have in our parliament who have cases pending against them for corruption, rape, murder, conspiracy? Firstly, we don't even know the legitimacy of these cases because in India, bureaucrats and politicians use corruption laws as political and profit weapons. Secondly, in cases where the charges are legitmate, between intimidation of witnesses by police and political goons, corruption of judges, endless stay orders, the cases remain pending for years while gangsters and criminals continue to be lawmakers in our great democracy.
This is not a criticism of India. It is a criticism of the political and governmental problems India has that will need to be fixed before we can move on.
I was told by a police sub-inspector how he paid a huge amount of money to a senior police officer to be put at a certain posting, and how he had 6 months to recover that, plus profit, before he would be moved to make place for the next person paying money for the opportunity. This way the senior officers convert postings into money for themselves, which they pass upwards, and junior officers use their police vardi as an opportunity for racketeering.
I know another case of a certain state where the chief minister would make no police or IAS or state AS appointments without payment of huge sums. In one case, a man was asked to pay Rs 2 crore for his son to be promoted to position that he was overdue for. The man paid over a crore, but could not come up with the rest in time, so the chief minister's goons just kept his money.
Another case, the senior most IAS officer of a certain state used the state housing authority to allocate prime state owned land to him and other officers at throw away prices, and had the state pay for the construction of all the houses, and while he was doing this, he had corruption charges brought in court against another officer who had been sidelined for obstructing official corruption in the state.
We have problems in our country that need fixing really badly. |