Income tax exemptions and raising the limit benefit only a small percentage of the population. In fact collecting personal income tax on salaried sector occupy about one third of income tax department man force and expenses.Is it not better to abolish income tax on salaries altogether?
So it would be better to target them and extract all their unpaid taxes. Bedsides the government should also learn to prune its expenses and save money.
The problem of distributing Govt income benefit and burden is pretty OK on the on the G2C side (govt to consumers ala people where employment is caterogized under) but the G2B (Govt to business) policy of income benefit and burden distribution....u wonder if the policy was charted by a crack head for 2 dollars.
In Indian G2B policy, for FMCG (Fast Moving Consumer GOods) exporters get SUBSIDY....a whopping 17 percent cashback on select industry! But then, a start up local business gets a nice and fat 12 percent commercial sales tax :D
If you have an exporting Co., either as factory or as agent, u have enough money for foreign representation. So u don't need subsidy. But if u r a local entrant and newcomer to the biz having issues w/ cash flow- that's when u need subsidy the most. But GoI taxes the local new entrant and pours ...more