Is it not strange that out of all the tax revenue that the government gets almost 80% comes from indirect taxes?From the govt's point of view indirect taxes are better as they are supposedly not painful to the tax giver.Do you know that when you buy one litre of petrol, 17 Rs goes in the kitty of the govt as tax, or when you buy a matchbox,25% of its value is tax.What a regressive tax regimen indeed ! The poor for whom the marginal utility of additional money is much more than for the rich pay the same taxes as the well to do.Given that the PDS system is dysfunctional , they buy the rice and sugar at the same price as you and I .And the govt has the gall to say that it is pro poor.
a poor person might be spending like 80-90% of what he earns... while the rich would be saving 80-90% of what he earns.
ReplyDeletenow if you tax on the spending... the poor will pay a higher percentage of tax on his income than the rich.
thanks for removing the word verification.
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