Income Tax Reform: Why should I pay tax? This question is illegal or unethical, but it is very big. The government is also worried about this. Perhaps the effect of this question is that despite all the efforts, the percentage of the population paying income tax is not even in double digits (6.25%). However, this figure has almost doubled in the last five years. But, the government is not considering it sufficient.

According to the data given on the website of the Income Tax Department, out of 132 crore people of the country, only 8.27 crore people pay income tax. Along with these figures, it has also been told here that 45 percent of the US population pays tax. Reasons like lack of 'tax culture' in the country, feeling like why should I pay tax, attitude of considering tax as a burden have been given behind the low number of tax payers. Along with this, giving reasons, an appeal has been made to the people to shun such mindset and resolve to develop 'tax culture'.

one and a half dozen types of tax

The government argues that even if social security and health facilities are not available here like many developed countries like America, Britain, but we should look at the issue in a larger perspective and appreciate that here the government is providing education, health, Many types of responsibilities like subsidy have to be fulfilled.

The government argues that tax is also necessary to develop basic facilities in the country, whereas tax payers believe that after paying tax to build a hospital, they have to pay huge treatment bills (including GST) in private hospitals. , After paying school taxes, children have to pay hefty fees (apart from the lump sum amount at the time of admission) in private schools. Even after paying road tax at the time of buying a vehicle, toll tax has to be paid for plying on the roads. Overall, people in India have to pay one and a half dozen types of taxes.

No facility even after paying tax

The reality is that there is a lack of facilities in the institutions built or run by the government for health and education and the government does not have much control over the private hospitals and schools that charge huge amounts in the name of facilities. According to a report, 70 percent of the population of villages and 80 percent of the population of cities are dependent on private hospitals. In the year 2021, the private hospital sector was pegged at Rs 9995.06 billion and it is estimated that by 2027 it will be Rs 25429.49 billion.

politics of gleaning votes with tax money

Governments have been using a large part of the heavy taxes collected from a few people for political gains. In the name of relief, a huge amount is spent on providing free goods and services to a large number of people. Till December 17 in the year 2022-23, the government collected Rs 11,35,754 crore as direct tax. In the financial year 2021-22, this amount was Rs 9,47,959 crore. From April 2020 to December 2022, about four lakh crores were spent only on giving free ration to the poor.

This scheme, which was started at the time of Corona, has now been extended till December 2023. One aspect is that even after three years the number of its beneficiaries has not reduced. The government has been saying that about 81 crore people will get its benefits. Instead of reducing their poverty, the government's emphasis on giving them free food grains continues even after the end of the Corona period.

Need to curb tax evasion

Do everyone who earns above the tax exemption limit pay income tax? Statistics don't say so. In 2011, according to an information quoted by RTI, the number of lawyers in the country was 13 lakhs. In November 2021, the number of registered allopathic doctors in the country was also more than 13 lakhs. Between January and December 2022, about 38 lakh new cars were sold in the country. In view of these figures, if we estimate the number of income tax payers, then the problem of tax evasion can be estimated.

Inconsistencies like not being able to stop tax evasion, instead of catching those who hide income, putting maximum burden on the tax payers, also play an important role in strengthening the feeling of why should I pay tax among the people. It will be a matter to be seen in the coming budget whether the government can simplify the complications related to tax and give relief to the people who pay income tax and inspiration to those who do not pay it or not.

Source: Jansatta