On this weekend, I have chosen a little hatke topic, which is as follows: Recently I read an article on social media by an Indian who is residing in UK, where he has shared his experience about income & expenses there.
His annual income is UK 61,ooo pounds( I pound = Rs 80) which is Rs 48,80,00.
After paying income tax @ 40% the net income becomes Rs 29,28,000.
Then he is paying 700 pounds per months as house rent, 140 pounds per month as Municipal Council Tax, approx 100 pounds per months as Gas and Electricity Expenses.500 pounds per annum as Water charges,about 1000 pounds per annum as Car Insurance and 250 pounds per annum as Road Tax (you can not drive a car in UK without insurance and road tax). With other minor taxes the total comes to 18,750 pound, equivalent to Rs 15,85,000. So Net balance income is Rs 13,44,000. All these bills are non negotiable and has to be paid by all persons living in UK. As per data available about 40% of UK residents pay income tax. So a person earning Rs 48,80,000 is left only with Rs 13,44,000, which means about 72% of his income is going towards Income tax, car Insurance, Road tax , Water & Gas charges etc etc.
This is the main reason why UK is developed country, there are good roads, 24 hours water and electricity, good public schools etc. Other main thing UK produce less and consumes more specially items of foods, clothing, petrol & petroleum products and many more daily use items, which means that UK is net importer of these items, but still UK is developed because people pay their taxes honestly, no body tries to do business without bills, in cash.
Now let us talk about India
India, generally do not import food and basic clothing. Presently after de monitisation and other govt measures about 8 to 10 % of Indian pay income tax, and we have very low tax rates which starts from 5% and max goes to about 35%, it is not a flat rate of 40% like in UK.
We have population of 130 Cr, and all of us want cheap electricity water, best roads and highways, cheap petrol , low air and train fares etc etc. Here a car owners will shout if the petrol price goes up by Rs 5 per litre, which may not amount to Rs 300 to 500 per month for normal car user, but they will make such an hue and cry as if heavens are fallen on them. Same car owners will not bat an eyelid and spend Rs 300 for movie ticket in multiplex and pays Rs 200 for pop corn.
We, Indians have habbit of spending in cash, and never ask for bill from grocery shop, and from other shop keepers for normal day to day purchase. And now think of wholesale traders sitting in Mumbai’s Kalbadevi area and Delhi’s Sadar bazar area, where the business is generally in cash which is without bill. Se here no one pays any GST( earlier Sales Tax).
But all these people want good roads, 24 hours water and electricity, want good govt schools and hospitals and all the facilities free of cost without paying a rupee in tax to either state or central govt. They all will blame govt for bad roads & traffic jams, poor conditions of rail & railway stations, conditions of airport.
When the govt introduced de monitisation and later on GST to prevent tax evasion, all these type of people are the ones who are raising hue and cry, as they will have to pay tax now. These are the same people who are sharing and liking any thing against present govt on any social media platform. So all these tax evaders and politicians & leaders from opposition parties and pseudo seculars have their own grudges with this govt. If you are not paying taxes then you do not have any rights to demand, the mantra here is FIRST PAY & THEN DEMAND, till then you do not have any right to abuse the system or govt( as you are also apart of system & govt), when you do not get electricity or when the garbage lying in front of your building is not picked up or when you are struck in a traffic etc etc.
We are a democratic country, which means govt of the people, for the people, by the people. Which means we all are equally responsible for all the happenings in the country.
Some people will say there are so many politicians who are corrupt and their aim is to just make money from politics, but we are to blame our selves why we are voting for these politicians again and again.
I am not a pro present govt person, and may not like so many of their policies, but this govt is making an honest effort in doing good for the country and citizens. But I am definitely against these hypocrites & pseudo secular journalists and politicians, who think first about themselves, then religion and caste and lastly about the betterment of country. When govt talks about digital economy, these are the people who oppose it.
Waiting for your feed backs/views/comments.
R. N. Mungale.
I agree totally with Mr. Malik.
Bobby
Anil, something that British and American tax payers benefit is social security which is provided either in their old age or when unemployed. The other is health security or whatever they call it. Here, our taxes, especially that of the middle class is taken but benefits go to the poor who don’t pay any taxes. Let the benefits of the taxes be evenly distributed and you’ll see a difference in the attitude of the people.
Also with rampant corruption how much goes towards infrastructure and how much into the pockets of politicians?
Anil Malik Post author
Bobby- I also feel the same way, but problem in our country is our politicians. Secondly our income tax base is very low, hardly 6 to 7 % of the population pay income tax, the problem is mostly with the cash economy.