The Hindu : New Delhi News : Taxpayers want Union Budget to cut tax rates

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Monday, Jul 06, 2009
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Taxpayers want Union Budget to cut tax rates

Staff Reporter

NEW DELHI: The latest increase in petrol and diesel prices announced by the Manmohan Singh Government has come as a rude shock to many people ahead of the Union Budget. According to a survey conducted in the Capital by Shyam Vyas MARC Private Limited, 70 per cent of the respondents said the decision to raise the price of petrol by Rs.4 a litre is “unethical and grossly unfair” for a coalition government that just rode to power on the promise of helping the “aam aadmi”.

The report reveals that 50 per cent of the respondents had not anticipated this price hike and 70 per cent of them said they do not expect the Government to roll it back because “now the government is in power and without the fear of electoral backlash for the immediate future”.

Survey results

The surveyors asked the respondents if they “approved” or “disapproved” of the stable majority obtained by the UPA coalition in the recent elections. On this, 80 per cent said they “approved” and were happy that the Government was a stable one.

Based on a sample size of 460 people, the survey indicates that 40 per cent of the respondents are “unhappy” with their current economic lot, while 40 per cent said they were “uncertain”. Only 20 per cent said their economic situation made them “happy”. Asked about the major problems being faced by the common man, 70 per cent said the increasing prices of essentials, increasing violence, and terrorism were confronting them in equal measure.

As for their expectations from the Budget, 80 per cent agreed it is time to bring the income tax rates further down. “These are hard times, and 100 per cent of the respondents felt the ordinary middle class taxpayer is overly burdened with already imposed taxes,” the survey said, adding that many were for a uniform across-the-board income tax rate of 15 per cent eliminating all cesses and surcharges. It would be a big motivator for tax compliance and a huge revenue generator for the government.

While 60 per cent believe that Finance Minister Pranab Mukherjee will decrease their tax burden, 20 per cent felt “concerned” he might increase it. Another 20 per cent felt there would be no major shake-up and the status quo would be maintained.

Reduction in prices of essential commodities and reduction in income tax rates were sought by 70 per cent of the respondents as “the one major wish they had from the Budget”. Seventy per cent of the respondents felt the older and retired section of Indian society is most need of government attention.

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