Tuesday 3 May 2016

Life of middle class under Burden of various Taxes

Ever since I started noticing tax system in European countries, I started condemn our system’s intention to imposing plethora of taxes on a middle class.  After a gap of every five year, we cast vote and in return, we get some more new taxes.  Often, several questions hit in mind, is really government justifying with our tax money? Or what we get in return in place of paying the tax? Therefore, let’s focus and try to understand the actual meaning of imposing taxes. In European countries, tax enforces just to execute basic human rights for every individual such as; provide our children with quality education, provide our families with better health care, to make sure our food and water are safe and hygienic, to keep our road clean and perfect, provide public transit and parks, build and maintain the infrastructure of our area, provide legal safety to their citizens, in other words, fulfill our basic needs every day of the month, every month of the year.


Unfortunately, in India, situation is quite different. Indeed, we still far away from our basic human rights. However, directly or indirectly, every Indian is a tax paying person. From niddle to car, whatever we buy from the market, we pay the tax on it. Interesting to know, around 25 types of taxes enforces in India on various things.  Ironically, in the 2016 union budget, central government introduced five more new tax such as;  Krishi Kalyan Cess, Swachh Bharat Cess, Infrastructure Cess, Dividend Distribution Tax and  Entry Tax.  Sorry to say, but middle class suffers badly between taxes. In India, most part of the population belongs to middle class category. Hence, middle class is the biggest victim under plethora of taxes for the long time. Here, people are born to pay taxes, wake up early, work late and pay tax within time; this is a bitter truth of middle class life. Often, I feel that a concept of tax is injected in our DNA. In fact, many of us don’t know that why actually we pay tax? According to them, they just pay because government asked to pay.  However, big thing is this; last 25 taxes were not enough to run the government. Of which, they bring five more new tax.
Anyway, Let we make another point concerning, private or government sectors employees work hard, even in tough circumstances, just to earn money for their families’ survival. In fact, they earn to keep system running and so they provide us the basic need and public services as well. Unluckily, in this 21th century, most of us are still struggling for the basic needs which are first right of every individual. Ironically, the fact is basic human rights was never in the priority list of our government.  That’s why, even after independence of 67 years, middle class always feels hopeless while it’s come to basic human rights. Let’s look at the impact of 2016 union budget on middle class. Soothsaying is difficult task and in 2016 budget it’s has been proof. Indeed, middle class expected to get some relief, but happened just opposite. Plenty of new tax imposed, service tax rise around 0.5% and now it is 15%. Its means it will directly hit on inflation. All necessary items have been expensive; it will surely impact on middle class monthly budget. According to us, the biggest drawback was that there was no new idea in the budget.




Meanwhile, central government introduced GST bill in the parliament but because of opposition objections, still bill didn’t come into force. According to GST bill, there will be only one tax in enforcement in place of plethora of taxes. Indeed, it will boost the Indian economy and will control the black money. Literally, in most of European countries, only one type of tax enforce on the public which is the best things about them.  In a nutshell, when the lifestyle of people gets better then countries automatically move on the path of development.  In order to bring change in the life of middle class, government needs to justify their tax money, by providing basic needs. In a surprise note, India holds 4th ranks on top billionaire list in the world. On the other hand, we also hold 130th rank in development index of people which is very hard to believe. Therefore, to balance the society, government needs to work from ground level with good intention. 



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