WHY THIS TOTAL AUTOCRACY IN FINANCE BUDGET
We are watching almost daily in the media that the Honorable Finance Minister is giving an audience to representatives from the various sections of the Industry and Service sectors to have their views, requirements and concessions in the ensuing Finance Budget. But the vast majority of our economy called the “Salaried Class” who are also incidentally the among the largest contributors of tax both directly and indirectly are never called upon for an audience by the Finance Minister to seek their views and requirements, leave alone giving any concessions to them.
Is this Democracy?
The Corporate Tax has not been changed for the past few years. The Dividend Income is exempted from Tax so that the rich Corporate Promoters go almost tax free. The Fringe Benefit Tax (FBT) introduced to tax the fringe benefits the Corporates extend to their employees has only resulted in the employees’ benefit being reduced notwithstanding the questionability of the definition of fringe benefits.
The Service Tax paid by the Corporates are deducted from their Excise Duty liability. But the salaried employee pays both Income Tax and Service Tax in full without any deduction.
The net result of Service Tax deduction for Corporates, FBT and the resultant reduction in employee benefits is that the Corporate income increases and the Corporate Promoters getting higher Tax free Dividend. The common salaried employee gets lesser tax-free benefits and pays more tax.
Add to this an almost daily increase in the commodity prices thanks to a section of mindless consumers who have learnt their household budgeting lessons from the spending economy of the USA and are willing to pay any price for their conspicuous consumption without any thought of their future again adding to Corporate Profit and the riches of the rich Corporate Promoters.
So here is a budget where the rich get richer, the not so rich (comprising of people who feel rich) invisibly starting to become poor. The poor remain as it is but nevertheless furnished with a TV for which they would not have money to pay the electricity, Gas connection with no adequate supply of LPG cylinders and offcourse Cement at concessional rate but no land at humanly affordable prices to construct upon.
Is this Democracy?
The Corporate Tax has not been changed for the past few years. The Dividend Income is exempted from Tax so that the rich Corporate Promoters go almost tax free. The Fringe Benefit Tax (FBT) introduced to tax the fringe benefits the Corporates extend to their employees has only resulted in the employees’ benefit being reduced notwithstanding the questionability of the definition of fringe benefits.
The Service Tax paid by the Corporates are deducted from their Excise Duty liability. But the salaried employee pays both Income Tax and Service Tax in full without any deduction.
The net result of Service Tax deduction for Corporates, FBT and the resultant reduction in employee benefits is that the Corporate income increases and the Corporate Promoters getting higher Tax free Dividend. The common salaried employee gets lesser tax-free benefits and pays more tax.
Add to this an almost daily increase in the commodity prices thanks to a section of mindless consumers who have learnt their household budgeting lessons from the spending economy of the USA and are willing to pay any price for their conspicuous consumption without any thought of their future again adding to Corporate Profit and the riches of the rich Corporate Promoters.
So here is a budget where the rich get richer, the not so rich (comprising of people who feel rich) invisibly starting to become poor. The poor remain as it is but nevertheless furnished with a TV for which they would not have money to pay the electricity, Gas connection with no adequate supply of LPG cylinders and offcourse Cement at concessional rate but no land at humanly affordable prices to construct upon.
AGONIZINGLY AMAZING.
posted by hari at
6:30 PM
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