The taxing season

Seems to be a season of additional taxes. Everyone is talking about some additional tax. PMC is considering adding vehicle tax to reduce the number of vehicles coming on road everyday. On the similar lines even the state government is thinking of adding congestion tax Mumbai residents.

Every individual is already paying up a huge amount of tax for each and every thing that he/she uses/purchases. Here is a list that directly affects a salaried person:
  1. Income tax - largest portion on the salary goes under this head
  2. Sales Tax - on every legal purchase, you pay this tax
  3. Service Tax - Many of the services are under this head.
  4. VAT - This was supposed to reduce the tax we're paying. However, what I have observed is I have started paying VAT even on the food items purchased in restaurents, which was not there earlier.
  5. Education cess - Many of the tax categories are levied with this cess.
  6. One time road tax - when you purchase any vehicle, you pay a lumpsum amount.
  7. Road Toll - At various places on highways/bridges, users end up paying this toll.
While I don't have objection to many of these taxes, my main worry is whether this money reaches back to the people in the development form. It seems, however big amount we'd pay towards income tax, the IT department would remain always hungry. While the big fishes (read tax evaders) escape easily, the common man is squeezed to the last penny in every possible manner.

The main purpose of tax is to provide facilities to the citizens, and if government is failing to do that because of the inefficiency or corruption, increasing the tax is not the way to go.

Now let 's see if the newly proposed tax by PMC would be effective or not. A four wheeler costs from 2.5L upwards. Now, even if you add 10-20K of new tax, would people stop buying the 4 wheelers? No. If PMC proposes to charge upwards of 50K as charge, I am sure the automobile lobby will not allow the authorities to do that. So, it would just serve as additional income to the PMC, 10-20K per vehicle, and would not achieve it's main purpose.

Instead, PMC should really concentrate on improving the public transport system and that is PMT. PMT should be strengthened in terms of
  • New units in the fleet
  • efficiency of the staff
  • politeness and service oriented attitude in the staff
  • cleanliness.
  • Reliable frequency
If these simple things are done, many of the Punekar's would revert back to this public transport system and it will automatically reduce the number of vehicles coming on road.

It's high time that the authorities undestand increasing the tax is not the real solution. They need to be creative, innovative and address the root cause not the peripheral issues.

BTW, any idea what is the state of BRT these days?

Comments

Post a Comment

Popular posts from this blog

Subscription Services

Image
As the internet penetration increased over the last 2 decades, it also gave rise to digital subscriptions. The internet users slowly started developing trust in internet-based payments and that too on recurring payments. It probably started with the tech community using the recurring payment systems and slowly spreading that faith to non-tech-savvy users. There was also a phase when I started using the credit card for online transactions but wasn't comfortable storing the card details with the merchant. I used to enter the details every single time. (That is how I still remember the CC number that was in use at that time) In the late 2000's I was introduced to Ecom website development and since then it has been part of my professional as well as personal life. Over the years, I learned about the  PCI-DSS standard , and the extent to which the Ecom companies make an effort to protect consumer data. There have been instances of a data breach across the globe, but alon...
Read more

Movie Review: Chhota Bheem and The Throne of Bali

Image
Set in the beautiful islands of Bali, this movie is meant to entertain the kids. But unfortunately adults may not find it that interesting.  As usual, when Bheem along with his gang and King of Dholakpur reaches Bali, they find that Bali is in danger. Apparently, Bali's Queen is King of Dholakpur's sister and were invited for crowning ceremony of the prince Arjun. Upon arrival, Bheem and the team found that everything is devastated in Bali and there's no trace of Royal family including Arjun. After much of a search, Bheem finds the Rajguru (Royal Priest) who had helped the prince escape the wrath of the invader - Rangda.  The story line is pretty much predictable and there are no surprises till the end. Bheem needs to be the ONLY savior and it turns out to be that way. (This actually is a problem for children mentality, but I'll save the thoughts for some other time.) Overall animation is similar to the serial and there didn't seem to be any attempt...
Read more

Telemarketing

Last week Mobile rings .... Me: Hello --: Hello, this is XXX calling from XXX bank. Sir, you hold XXX bank credit card, right? Me: Yes. --: Sir, XXX bank is offerring you a ready cash of Rs.4,65,000/- Me: Actually this amount is too small for me. --: How much amount you are looking for, Sir? Me: Something like 4 crores.... --: (silence) --: 4 Crores ???? --: Is any bank offering you that much amount? Me: No! --: Then? Me: If you can offer me 4 lakhs just like that some other bank will give me 4 crores as well :) --: Ok Sir. (disconnect) :) Today Mobile rings ... Me: Hello --: Hello, this is XXX calling from XXX bank. Sir, you hold XXX bank credit card, right? Me: Yes. --: Sir, XXX bank is offerring you a ready cash of Rs.4,65,000/- Me: Last week only I told you folks that this is very small amount. I am looking for amount like 4 Crores... --: ccccrore ?????? (hung up) Nice entertainment right?
Read more