Financial Daily from THE HINDU group of publications
Monday, Jan 17, 2005
Financial Daily from THE HINDU group of publications Monday, Jan 17, 2005 |
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Opinion
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Letters Opportunity for honesty
"The higher the burden of taxes, the greater is the incentive to evade" is the universal law of fiscal economics. Everyone accepts that the Government must impose and collect taxes. However, short-sighted fiscal policies and crippling rates of taxes are the root of all corruption as they leave very little room for honesty.
The lowering of I-T slab rates have helped substantially increase the number of assesses declaring incomes of over Rs 10,00,000 a year from the earlier half a million. The I-T kitty has consequently grown rapidly! Globally indexed, to be realistic, the lowest I-T slabs should be increased to Rs 5 lakh. The resulting reduction in the number of assesses will enable the I-T authorities to focus more on all the wealth that is unaccounted for. The basket of direct taxes such as Customs, excise and sales tax, accounts for 40 per cent or more of the price paid during a purchase. Therefore, it is cheaper to buy without bills, and it suits the seller to play ball. The forthcoming Union Budget is an excellent opportunity for the Finance Minister to initiate corrective measures. N. Narasimhan Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in
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