Wednesday, 12 March 2008

Why should I pay tax?

You may complain government is not doing enough to solve our problem.Traffic is a problem. IT professionals are getting harassed byeverybody starting from vegetable vendors to auto-walahs. But not payingtax is not the solution. A mistake does not solve another mistake.

Is the tax so high? I don't think so. In India we don't pay tax till1,50,000.Some part of HRA is exempted from tax. Savings till 1,00,000 is exemptedfrom tax.Tax is lower at lower income group and increases after a certain income.So somebody whoearns around 6,00,000 pays an tax of 1,00,000, which is around 16%? Thisis much bellow than thatof USA. So the employees don't pay much tax.

Who is getting benifited from the tax? Lot of us studied in subsidizedschool/college or private school or college which is build on subsidized land.Government has paid for us, and it should be our duty to return back.

Today lots of IT professionals own their own car. It increases thetraffic problem.Thus government needs to build fly-over. Spend to manage the trafficproblem. So government does spend because of us.

1 comment:

  1. Absolutely. I live in the Netherlands and can you guess the tax rates of the higher bracket here? 52%. Of course, the system is good and people pay taxes knowing they will benefit from it. We have 2 sides of the problem in India. We need to educate people that their taxes is what can build this country. Secondly, the government should provide incentives to people and encourage them to pay tax. For example, all honest tax payers should find it easy to get exclusive/free/discounted services from the government in government organizations. The government can also make it easier for the tax payers to borrow from banks or buy property for example.

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