Every year in November-December, the business papers are abuzz with news about different industry bodies making their representations to the Finance Ministry. There is a lot of focus on the problems faced by each sector and how changes incorporated in the Budget would help.

Considering corporate tax collection was over twice the income-tax revenues garnered by the Government in 2010-2011; it is obvious for successive Finance Ministers to lend their ears willingly to proposals presented by industry bodies. Perhaps, we, as individual tax-payers, do not yet form a representative set that has the power to reach out to the Ministry. It is necessary and important to look at the Union Budget through the lens of gender as well as sections of society, than classify income-tax payers based on income slabs.

Advertisers swear by the socio-economic classification, which classifies households in rural and urban areas using two parameters; educational qualifications of the chief wage-earner in the household and the number of assets owned from a pre-specified list of 11 assets. The Finance Minister can take a cue and focus his Budget catering to the varying needs of different segments of the society.

Differential rates

Women and men face different economic and social circumstances.  Yet policy approaches don't always take that reality into account. Last year, the Finance Minister did away with the preferred lower tax rates that were applicable to women by equating the tax rates for both men and women. Although many term this equality; the reality is very different when it comes to assessing workplace dynamics, especially when women are still paid less for the same job than what men get, even at some of the best companies. Adopting lower tax rates for women will bring more women into the work-force, get more taxpayers into the system and increase the share of women contributing towards economic development.

Women have a natural propensity to spend on items that benefit the entire household, unlike men, who can sometimes spend on high-ticket items just to boost their adrenaline. I would like to see the minister provide tax breaks on purchase of household items and appliances. Such benefits will ease the way a household is run by women and also provide them with spare time for other pursuits.

Likewise, women are engaged in several revenue-generating ventures which cannot be slotted into full time employment or business. Women run boutiques, take tuitions, operate beauty parlours and act as agents in the financial services industry, among several other entrepreneurial ventures. However, none of these activities receive any tax advantage or preferential treatment. The Minister should think of taxing such ventures favourably, as this will encourage more women to contribute to the economy.

Family goals

Another area of concern that is totally underplayed — often, ignored — is the healthcare costs women encounter. Unlike most men, who have some lifestyle vice or the other impacting their health status, women tend to lead a healthy lifestyle. Yet, there are treatable illnesses specific to women, such as breast cancer, pregnancy related illnesses and cervical cancer, that have been on the rise. All these medical conditions cost a lot to treat, yet there are few tax incentives offered that can cushion the financial impact of such incidents.  

The role of women as providers for their families is frequently underestimated or undervalued. Women have different economic preferences than men.

Any change in the Budget need not have the same impact on women as with men, especially in a changing scenario where the role of women in household decision-making has undergone a sea change.

What women would like in a Budget is lower tax rates for them; greater tax benefits for investments towards long-term financial goals such as children's future financial needs and their own retirement.

Women seek greater financial security than do men, who take greater financial risks and are known to save in long-duration financial instruments such as insurance and retirement. The Finance Minister should encourage such investments and provide for a higher tax deduction on such investments.

Related Topics
comment COMMENT NOW