CA Manish Garg

CA Manish GargWhat could a common man expect from the budget? Today the central government has tried to collect as much as possible from the pocket of the consumer. The tax levied by the government is much more as compare to the benefits given by the government. Central Government always make the promises to divert the particular amount to different sector of the economy for the welfare of the consumer but still the buying power of the consumer is keep on decreasing. Ultimately the effect comes in the way that the consumer finds his own ways to increase his pocket income in the form of tax evasion. So why the government doesn’t announce the particular schemes so that the consumer himself forced to deposit the tax.

The government has tried to cover the every grey area under tax net. A Large amount of tax the government is now collecting from the consumer so why the government doesn’t announces separate schemes for high tax payer of the society. There are separate pension schemes for the government employees even they are not making the high amount of contribution to the government, so what about the consumer who are making high contribution in the form of taxes towards the government.

Why the government doesn’t make any refund in the form of pension in the old ages to the persons contributing high amount of taxes, so that the person evading taxes should be motivated towards deposition of more and more taxes instead of finding the way to hide the income. In this democratic country the government has even created the discrimination between the consumers.

In the last 10 years the government’s total tax revenue has grown from just Rs 3.57 lakh crore in 2005-06 to Rs 13.6 lakh crore estimated in 2014-15. On an average, the growth over the period has been 16.4 percent annually. Meanwhile, gross domestic product of the country at factor cost at current prices grew from Rs 26.26 lakh crore in 2005-06 to Rs 104.73 lakh crore, marking an average annual growth of 14.85 percent. Tax revenue usually grows faster than GDP. But the growth that India witnessed during the period is far from satisfactory.

Further if we move towards the agriculture sector then in the post-1990s period, there has been a continuous decline in government support in the form of declining investments in agriculture. The withdrawal of the State has led to much greater dependence of farmers on private sources. There has also been an upward trend in the cases of farmer suicides over the years, and the victims have largely been marginal and small farmers. Increasing costs of cultivation, leading to higher indebtedness, crop failures and inability to face price rise with greater liberalization of the agricultural sector have forced farmers to take this extreme step.

There is big question on the revenue of government today, whether the same is still not at the level which can boost the India economy today. Almost all the manufacturing or service sector is under tax net now. Today if a person is going outside for the dinner then on the bill of Rs. 1000, he has to pay the taxes of Rs. 500, but the per capita income of the consumer is still same.

So the proper step is required to boost the economy of India in right way. For that India require some better policies to make economy and consumer aware towards the benefit of tax deposition instead of tax evasion and proper step should be taken to stop the generation of black money from consumer as well government point of view.

(Author may be contacted at Mail – [email protected] Contact – 8586055516)

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September 2021