Widening the tax net

June 18, 2016 01:30 am | Updated October 18, 2016 12:37 pm IST

The Prime Minister’s desire to bring more people into the tax net is understandable but fixing a target of only 10 crore households for thisis intriguing (“Modi wants 10 crore households in tax net”, June 17). Every person and legal entity whose taxable earnings are above the threshold ought to pay tax without exception. It is an open secret that there are many who avoid paying tax, which signals either a lack of faith among the public that the taxes collected from them are not put to optimal use in the cause of public welfare and nation development or that the tax slabs are too high to adhere to. Ours might be the only nation where the affluent are non-taxpayers while those who nearly lead a hand-to-mouth existence are under the scanner for tax compliance. When taxes were phenomenally raised in Sweden overnight, taxpayers rang up the taxmen to visit them and collect the enhanced taxes as the citizenry had absolute faith in the end use of taxes collected.

Sivamani Vasudevan,Chennai

There is only one spoke in the plan. The taxpayer, while funding governments, gets nothing in return. The revenue generated perhaps goes first to fill the coffers of the corrupt. Unless the taxpayer is able to see good roads, live in a clean and safe environment, is able to lead a decent life at affordable price levels, has access to good education and cost-efficient health care and experiences other visible improvements in the standard of living, there will always be a reluctance to pay tax.

Neelakantan T.K.,Chennai

Tax revenue can be increased either by widening the tax base or increasing the tax rate. The latter may not be possible as the perception is that prevalent rates are already high. The resistance to pay taxes may be because the tax revenue is not being utilised in an effective way.

Indians are ready to pay more taxes if they get more from governments. By providing adequate infrastructure and ease of doing business, there will be more employment opportunities which will result in the tax net widening. You can lead a horse to water, but you can’t make him drink.

J. Jaykris Gurucharan,Hyderabad

A tax official spells fear. This culture should be erased and a feel-good atmosphere must be created by clearing all the doubts of a taxpayer in a friendly manner. Citizens must be made to feel that they are an integral part of national development which will motivate them to pay. Tax officials should make attempts to reach out to income tax assessees. They should realise that ignorance may also be a reason why there is a less number of people in the tax net.

J.P. Reddy,Nalgonda, Telangana

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.