The IT dept is the most unproductive organization inthe nation.If we analyse the budget,( i did half a decade ago) I don't think the pattern has changed much, we find thetotal budget is around 4 lakh crores. ( now may be5lcr).
1.Most of the income is through excise & customs.(about a lakh cr)
2.The employees contribut 40k cr. Industry about 50kcr.(ONLY) Since the IT dept fails to collect (CAGreport)about 70k cr from the industry... because oftheir hospitality? )
3.About a lakh crs used to come from non-tax income,ie thro' the govt PSU, which might have reduced nowdue to Aurun Shouries killing the golden geese thro'disinvestment.
4. The 4th lakh cr of budget used to come from Govt debt. So actually the employees tax contribution was only1/8th in the total budget when i analysed it.Chidambaram' s efforts might have increased it or ifthe total budget increase , the ratio may remain same.But the in efficiency of the ITD is in not realisingtax from the industry resulting in nearly a lakh crloss. I don't know the salery and TA DA of theunproductive dept, which is a burden on the nation.
Strategem 1
Better abolish the direct tax dept. and divert thestaff to factories. That will be the first thing to dothat when we get the power.There should be no dis-incentives to the productivepeople who generate wealth.
Strategem 2
Increase Non-tax revenue, through efficient PSUs.By increasing non-tax revenues, we can phase out allthe funny and rediculus taxes.
Strategem 3
Govt upto panchayats can earn thro' fines from thecheaters, burglers, anti-socials, and rule breakers.'Fcourse , the rules must be swadeshi and regional, upto village level - not copied from west.
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Let's look at the the present tax sys.If one earns Rs.100/-The employer pays Rs. 100/- only when one generates aprofit of 1000/- or more. i.e an effort worthRs.1000/-The Govt takes 33.3% tax. i.e one takes home only Rs.66/-If he purchases a tooth paste for that amount, therewoud be a tax of say Rs.6/- ie the price is Rs.60/-The Retailer 'd have got it for 40/ + logistics + O/Hthe whole seller 'd have got it for 30/-The manufacturer might have got it at a cost of 15/-The cost of the material paste may be just Rs 10/ therest may be labour, package and advt etc.
That is for a material worth Rs. 10, every one of usare actually putting effort worth Rs.1000/-Why should we strain like that ?
For whose sake we are struggling ??
If you work hard, more number of hours to earn more ,you are taxed more , instead of appreciating for theincrease of GDP.
If you in crease your capabilities, to produce more,to climb the ladder, you are taxed more!
We are taxed to feed the bellies of the lazyunproductive people in the system ?
Let us abolish the direct taxes. And indirect too.
The Ancient system of 1/6th of farm product as tax tothe king is just 16%. The present govts 33% is rediculus with its unnecessary over heads in taxcollection mechanism
Friday, February 22, 2008
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