Even psychologically, Income Tax kills
incentive of the people to work more as they no longer desire to earn
more. I have seen many teachers refusing evaluation work simply because
they fear—out of every thousand rupees earned, Rs. 350 will go in Taxes.
Even Historically, Income Tax is a stigma
on Indians. Income Tax, in the form of legislation was imposed upon
Indians for the first time in 1860 by Sir James Wilson and it is on
record that it was imposed on Indians to recover financial losses caused
to then Indian Government run by East India Company due to "Mutiny" in
1857, Obviously to punish Indians for participating and supporting the
"Mutiny". When Income Tax is abolished, no one will need to deposit his
Income in Swiss Banks, Indian wealth will remain within India. No Black
Money will be generated and the Income earned shall be put to use for
the progress of our nation.
To recover Expenditure Tax, we are not to
go after each and every rupee spent. At the end of a financial year,
citizens should be required to disclose their savings. The Income minus
savings shall be the amount which should attract Expenditure Tax. Like
80C, even in Expenditure Tax, we may have certain clauses where money
spent on basic needs like food, health and education may get rebate in
Expenditure Tax to certain limits. The Expenditure Tax will
automatically encourage Austerity Drive and check Inflation.
So, "REPLACE INCOME TAX by EXPENDITURE TAX"
is the only MANTRA or "Magic Lamp" to control Inflation.
[Professor Ramesh Gupta is an educationist and freelance writer who also
is making his debut as a writer with the book "Bachhan, Gandhi and Me," to be
published soon. He can be contacted at: firstname.lastname@example.org]