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Economics
Implementation of High Taxation ‘Policies’ in India: Do They Yield Enough Return to the Public?In other words, does the humongous sum paid as taxes by the Indian citizens ever commensurate with the services and other infrastructural returns? With people contributing nearly 20 per cent of the indirecRead more
Implementation of High Taxation ‘Policies’ in India: Do They Yield Enough Return to the Public?
In other words, does the humongous sum paid as taxes by the Indian citizens ever commensurate with the services and other infrastructural returns? With people contributing nearly 20 per cent of the indirect and direct taxes, the expectation from the citizens’ perspective, is effective management, quality services, and facilities.
Tax Utilization Challenge
See less1. Inadequate Public Services: Health, education, and law enforcement services are poorly developed and managed, forcing people to rely on the private sector.
2. Wastage and inefficiencies: Corruption and administrative ineffectiveness rendered all these spending useless.
3. Tax Compliance: Direct tax collection has been low, with as few as 1% of Indians being tax compliant; hence the compliant taxpayers bear a higher burden and offer complacency to the non-compliant ones.
Progress and Positives
1. Infrastructural growth: Investment in construction of highways, metro rail, and digital infrastructure; a positive indication for the utilization in application of some of these resources.
2. Welfare schemes: Disadvantaged sections are reached out by this programs but their implementation is not even,
With the exception of a few sectors which have some developments, the return is not commensurate with the exorbitant taxes collected. Better efficiency, broader tax base and accountability in all public spending will eliminate this difference.