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Q.

India has a tax collection rate of only 10-11% of GDP compared to 23-24% for China. This means the government has less money to develop infrastructure and other projects. I understand not taxing the masses heavily, who are just getting by, but the scores of millionaires and billionaires being created should pay taxes of 70% on all income over $1 million and 1% of assets tax on assets over $10 million. Why does not India tax its superwealthy like other countries such as England, US, and elsewhere?

Tags: india, money, tax
Asked by Tarun Agrawal, 07 May '12 05:39 pm
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Answers (6)

1.

Tax should be proportional to the income of the individual. Many avoid paying taxes because there are many loop holes which their chartered accountants exploit. The tax system should be simplified in such a way that calculation of tax on the income is easy and enforcement agencies should work to make all pay tax according to their income. The rich should be paying more tax. Unfortunately, the middle income group pay taxes and the rich avoid by finding all the technical loopholes in the tax system.
Answered by Francisco, 07 May '12 05:51 pm

 
  
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2.

Because India follows Friedmanite monetary policy, which is a recipe for a double disaster. Friedmanite policy is easy 2 implement and it gives the political classes a lot of kickback.
Answered by A Moin, 07 May '12 05:40 pm

 
  
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3.

Oly corporate ppls are paying tax promptly as other ppl who are earning from their own (Business ppls) are not paying the same (Sales tax) by volunteer so it is happening like this.

As Govt. cannot check each and every citizen's income everyone shd pay volunteerly!!
If all indian citizens pay tax properly Indian Govt. can collect twice or even thrice than the current!!
Answered by praveen, 07 May '12 07:57 pm

 
  
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4.

A very high income tax rate is retrograde. India had income tax rates reaching 93% during the Indira Gandhi regime. It only helped in money going out of the legal system and getting converted into black money. Buildings in some of the posh areas in India were financed by black money generated during this regime. 30% white, 70% black was the way real estate prices were determined. And to get out of this jinx it took the country many years. Also a high tax rate kills enterprenership. Whatever the millionaire earns, majority gets saved or gets ploughed back into the economy either as bank savings or investments elsewhere. In addition, over and above Income tax there are excise, customs , octroi, vat, etc, etc, etc, on any and all items, which duties constitute almost 50% of any product cost. Add this % age to the income tax, we will come to a figure greater than the 70% you are talking about. Most of the income tax payers are paying 60-70% tax inclusive of duties, irrespective of w ...more
Answered by sridhar santhanam, 07 May '12 06:50 pm

 
  
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5.

Ye baat aap vitt mantari ko samjhao naa.
Answered by Sunidhi, 07 May '12 05:55 pm

 
  
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6.

Please write to the Finance Minister of India. we ordinaly mortal citizens of this country, poor power less people, without any authrotity are neither in position to do anything about it. contact the highest level people with your electrfying ideas immediately. yuou might get a bharat ratna for this
Answered by rajan, 07 May '12 05:42 pm

 
  
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