Income tax , in one form or other, has been the part
of system since time immemorial. Mainstay of government's expenditure has
always been income tax. No government can survive without income tax. But times
have changed. The world is aware that India is poised to become world's leading
economy in a decade or so, leaving China behind it. We all talk of India again
becoming सोने की चिड़िया. Most of PM's initiative are working in that direction.
Had PM been the only centre of power in the country, his strategies
would have galloped India towards the status of leading economy. But federal
system of government and 'clerical' bureaucracy are retarding India's march.
Civil Servants seldom use their super intelligence and super power for the
benefit of public / country. What I am proposing here , should have been
proposed by bureaucrats.
PM's thrust on start-ups made me sit up and think so as to
accelerate PM's great vision for my beloved country. An economic activity grows
in an environment of motivation. What is the greatest motivation for an
entrepreneur ? Zero income tax which will boost the business activity in the
entire country to unimaginable heights. It will be unparalleled in the whole
modern world. No one can contest my idea. Earning of more and more white money
should be encouraged by all means. On the contrary, income tax discourages
economic activity which is against PM's vision. Thus Income Tax must be
abandoned for ever.
The income tax should be replaced by expenditure tax,
commensurately. Every citizen of country must have a PAN card and almost every
expenditure of every citizen must be through PAN card, duly taxed. The revenue
thus collected through expenditure tax must be equal to or more than the
revenue collected by Income tax.
When GOI impose / increase income tax, it acts like a deterrent on
business including undeclared income, only due to thoughtlessness of
bureaucrats. But when income tax is abolished and expenditure tax
replaces it, on one hand it will give unprecedented boost to business and on
the other hand intelligently crafted expenditure tax will not only boost
revenues of GOI but will also become an effective tool to control
INFLATION.
Is it not a win win situation for everyone including my beloved
India ?
By
Mr.Rajiv
Chaturvedi [rajivchaturvedi79@gmail.com]
