With reference to the editorial, "Too few tax payers" (May 3), it is unlikely that the government would sweat over direct taxation but for some digital tracking from the desk. Field-level tax sniffing is a lost art. Direct tax collection stands at around Rs 5.5-6 lakh crore and a similar amount goes into paying the salaries/pensions of central government staff - a reflection either of the abysmal tax realisation or exorbitant employee expenses. The Seventh Central Pay Commission would add Rs 1 lakh crore to the outgo.
There is the effortless and all-pervasive impost, be it 15 per cent on goods and services tax or services. The common man then ends up paying 30 per cent of tax on income. In easy revenue, petrol's ex-refinery price is loaded 150 per cent at the pump! On top of this, the government adds one cess after another. A surcharge is even more blatant. Economists label it the "worst tax", and when it continues, a travesty.
Read more from our special coverage on "LETTERS"
The government is averse to toiling on improved direct tax design and administration. There needs to be greater concern about our approach to taxation per se. Revenue is augmented by economic growth, never through casual taxation.
R Narayanan, Ghaziabad
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number
