Summary:

Taxation, to the extent of enabling the Government to provide essential services is inevitable, but it should not be too burdensome on the real wealth creators. To be equitable its burden must fall on ALL proportionately.

The Indian Income Tax (I.T.) regime is a spider-web of complicated rules that interact with those of many other onerous Duties and Taxes. It is also, paid by a very few and its high cost of collection does not justify the tax collected. It is also, unreasonable, inequitable and is a double taxation that penalizes the wealth creators and encourages them to move to other, more favorable climes.

Of the many other tax regimes, a tax on Consumption? / Goods and Services Tax (GST), as now made applicable in India is the best and most equitable option. However, it needs to be made more comprehensive and be greatly simplified. It should demonstrate ‘Trust’ in the citizens, even as it calls for proper verification and lays out penalties for defaults.

A good GST regime makes I.T and even other taxes redundant and encourages the wealth creators to grow wealth within the Country.

We should begin to treat our citizens with a ‘Trust but verify’ attitude and not a ‘Suspect, Inspect, Harass and Confiscate’ attitude as we do today.

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