The numbers cited in the article, “The indirect benefits transfer” (May 4), bring to focus the role played by the poor when compared to the rich in contributing to the tax-to-GDP ratio. The focus on the role of corporates ignores a key point — corporates do create employment. Tax concessions cannot be compared only to MGNREGA and the ICDS schemes but should also take into account the “subsidies” offered to the public at large.
Zitendra Rao,Hyderabad
The strange fact of a reduction in direct taxes as a share of total tax revenue in recent years indicates the lack of initiatives by the government in achieving the tax targets. The worst-affected group of this partial phenomenon are middle-class government employees — every penny of their revenue is accounted for. Unfortunately, the government’s concern for the corporate sector in waiving tax along with the incentives is never extended to the government sector. It requires political will and modern methods to deal with tax defaulters.
N. Vijai,Coimbatore
It is appalling to understand that the total percentage of India’s taxpayers amounts to as little as 3 per cent of the overall population. In other words, the nation’s income tax burden seems to be borne by the salaried sections. As there are no concrete steps being taken to draw in the unorganised business sector into existing tax slabs, a large portion of the informal economy remains untaxed. To make matters worse, the government’s plan considering to tax long-term personal savings is akin to plundering one’s hard-earned money. Why aren’t business barons, ministers, celebrities and other sections who are affluent spotted on the tax radar?
Santhosh Kumar Ippili,Hyderabad
