Opinion: Another Tax, Another Burden On The Tax Payers

The Logical Indian

June 1st, 2016 / 3:15 PM

Image Courtesy: ibnlive, pardaphash

The new naming of taxes is misleading, to say the least, not that naming of taxes hasn’t been done before. The recent taxes which the consumer pays is Swachh Tax and Krishi Kalyan Cess. The name of the taxes is evident as for the purpose of tax being concerned. But this is strange, to say the least, to collect separate taxes for cleaning India and for farmers. To know why it is strange let us look at a couple of instances when taxes were named after schemes/social issues.

The two instances we would like to bring to your attention is the green tax which was collected for coal. The whole idea of taxing coal came in the back drop of increasing pressure on countries to create a fund that would fund green projects. The second instance was when Right To Education (RTE) moved its way from Directive Principles Of State Policy (DPSP) to Fundamental rights of the Indian constitution. The tax money collected would go on to facilitate quality education provided for all sections of the society. As we see in both the instance, global agreements on climate change initiated the green tax whilst constitutional changes wrt education warranted the education cess. Let us now compare this with Swacch Cess and Krishi Kalyan Cess.

Making India clean starts and largely depends on the municipality and corporations and the resources they have. Any efforts to clean India is best served by empowering the municipalities and other decentralized democratically elected bodies by powers and resources. Central collection of taxes does very little in furthering the cause besides the already existing tax structure in the center and state funds the corporations and municipalities for their smooth functioning, it begs the question why a new tax was collected when existing taxes did the work of cleaning up India? Similarly, issues faced by farmers suicides, loans, insurance etc have been existent for long and considerable resource allocated for the same. It is the inefficient spending and corruption which has been a stumbling block in ensuring benefits reach them. Unlike the examples given in the previous paragraph where there were international agreements and constitutional mandates that required additional resources which were not foreseen. Are farmers suicide a new issue or presence of filth is a new issue that warrants a new tax?

It is obvious that the new taxes is due to want of more resources/money and not for the purpose of controlling inflation. It raises the question why does a country which grows at more than 7 % needs new taxes for every new issue/scheme? especially when existing taxes already addresses these issues. Where are the additional resources which are accrued due to 7% + growth ? Are we calculating growth right? Are these taxes justified? You be the judge.


Edited by :

Share your thoughts..

Related Stories

Punjab Govt Debt Ridden Luxury Cars

Amidst Severe Debt Burden, Punjab Govt To Purchase 400 Luxury Cars For Ministers, Officials

Govt Asks Banks To Pay Tax On Free Services Like ATM Transactions; Burden To Fall On Customers

As Per Report, Adani Group Uses Tax Havens In The Caribbean To Minimise Tax Payments On Australian Projects

Food Price Farmers

The Entire Burden Of Keeping Food Prices Low Is Borne By Farmers

Fake Receipts To Lower Tax

Salaried Employees Can No Longer Produce Fake Receipts To Lower Tax Burden

Delhi Gang Rape

It Was 16th Dec 2012; This Is 16th Dec 2016. Another Day Another Rape In Delhi

Latest on The Logical Indian


Maharashtra Govt Publishes Job Recruitment Ad Under Maratha Quota, Bombay HC Asks Why


17 Months On, Kerala Govt Fails To Implement SC Order On Piravom Church Amidst Protest


Why Air Pollution Debate Needs To Shift From Delhi To Other Cities?


Election Results: MP, Rajasthan, Chattisgarh, Telengana & Mizoram; Who Won Where?


Govt Rejects Army’s Demand For Implementation Of 7th Pay Commission


Rupee Opens 114 Paise Lower After Urjit Patel’s “Unfortunate” Resignation


Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.