Looking merely at direct taxes, it is often suggested that India is an under-taxed nation. This, says R. Vaidyanathan, does not take into account the speed money paid for government service. This rent-seeking makes the nation high-taxed.

THERE is a view among some experts that India is an under-taxed economy. Many a time Finance Ministers believe in this and exhort people to pay their dues.

Advertisements are issued to induce people to pay taxes and novel schemes are suggested before every Budget to augment government revenues. One of the common arguments is based on the share of taxes to GDP and it is suggested that it can be much higher. Another is in terms of the composition of the taxes - direct and indirect - and it is suggested that the latter, which are regressive, are larger share of the pool.

Table 1 gives the share of taxes to GDP for select years from 1991. The share of taxes, both direct and indirect, has been around 15 per cent of GDP in the last decade and half. The share of indirect taxes was of the order of 11.5 per cent and that of direct taxes 3.6 per cent.

Based on this data of direct taxes to GDP of nearly 4 per cent, many experts, particularly of the Left persuasion, argue that we are a under-taxed nation from the view of the direct taxes. But, as we will show, they do not take in to account the payment to be made to government employees (variously called bribe, rent seeking, speed money, lubrication, etc.) for carrying on any activity and to that extent the total taxes are much higher than reflected.

Table 2 gives the level and composition of taxes of both Central and State governments in the last decade. A slight shift in the proportion of direct taxes from 1991 to 2003 is seen. It has gone up from 14 per cent of all taxes to nearly 24 per cent during this period when the proportion of the indirect taxes came down from 86 per cent to 76 per cent.

A substantial drop is seen in the Customs duties due to our international commitments. Excise duties declined from 28 per cent to 23 per cent during 1991 to 1996 and by a similar magnitude later. The share of personal income-tax showed an increase from 6.6 per cent to 9.9 per cent. As personal income-taxes and excise duties are shared with State governments, there is no enthusiasm for the Centre to reform them.

The aggregate taxes do not reveal the full picture of evasion and coverage. Table 3 provides the number of returns filed by salaried and non-salaried persons in 1999-2000 according to the I-T Department.

It says that there were no salaried persons earning more than Rs 1 crore annually and in all only 200 persons above Rs 25-lakh. In the case of self-employed, the number is around 900 in the Rs 25-lakh category with none in the Rs 50-100-lakh category.

From Table-3, it looks as if a relief fund should be created for all our top film-stars, cricket players, surgeons, lawyers, chartered accountants, architects, tax consultants and other self-employed persons. They all seem to be in distress!

Table 4 provides the number of returns from some categories of services as published by the I-T Department. The numbers speak volumes about the coverage and the nature of underlying collections.

The whole country there are apparently only 10,539 utensil and 5477 furniture shops in the taxable category. Pinch yourself.

Immediately the argument will be to strengthen, enhance, improve and network the I-T Department. The issue is not that. It is much more serious and cancerous. If you visit the Postal Department officers’ quarters in, say, Mumbai you will find mostly cycles and scooters.

But if you visit the residential quarters of the staff of Direct or Indirect Tax Department, you may find expensive cars parked there. That should provide clues to the issues facing us.

At the same time we find that the income of government employees rising faster than the inflation rate in the last thirty years.

Table 5 provides the increase in salaries of public sector employees in relation to inflation. The emoluments have risen 3610 per cent from 1971-72 to 2000-01 when the Consumer Price Index climbed 1440 per cent. This implies the public sector employees are net gainers with their real income well protected.

Hence decline in the real income cannot be a reason, if at all it is justifiable, for rent seeking from ordinary citizens.

Good news for humans, the favorite drink of scotch, soon a bottle of Black Label (750ml) is available for less than RS 1000 and Red Label (750ml) RS 500 in trade, if the government decides on mandatory basis for Imports less than 75% to 150%.

But this means bad news for the water industry, because they face competition with foreigners, imported spirits.

A study of the Indian Institute of Foreign Trade (IIFT) indicates that foreign companies Schnaps huge subsidies from their governments. European subsidies for agriculture and agro-related activities are available in your area? 109 billion per year.

The main raw materials for industry, such as wheat and barley have averaged a portion of grants of more than 80% to 90% of the value of production. This has exceeded 100% in the case of barley.

The average amount of subsidies for agriculture per year for European farmers east of $ 17000 and U.S. $ 16000 for farmers. Lugubrement compare these figures with the Indian farmers, we get only $ 12 per year.

According to the UB spirits division President, Vijay K Rekhi, “The domestic spirits industry, the government wants to obtain additional customs duties on imported spirits, but also wants a level-playing field” for local readers. This leads to approve the dumping of alcohol in our country.

On the whole side of the local industry, the government is also suffering from alcohol as the second largest revenue after VAT. The industry contributes R 25000 crore downtown and government revenue of this enormous quantity of a state fund. ”

However, information sources in the local spirits, who said they were against any movement for a fixed amount of additional customs duties on imports, it is widely regarded as a duty to isolate the local industry to Lock cheap imports.

Deepankar Barat President, Jagatjit Industries Ltd said: “Our first reaction is that we are against additional flat fee on the ground that Indian companies are different excise duty of the State to State.”

Another important aspect to note is that the EU and other Western countries have built non-tariff barriers against Indian exports of whisky to their markets, cited definition of issues. The European Union, it is not possible to Indian whisky brands sold in Europe, on behalf of the European Union as whisky insists that whisky does not produce IMFL is spirit.

“The local industry has been the case, that result, on the abolition of quantitative restrictions by the government, they should be free to export their products in each country, in the interest of free trade. That has not been possible because of the rigid attitude the European Union, “said Rekhi.

Lucknow: Geeta. If the karma (Arjun) combined (yoga) with Gyana (krishna) the result is success. But the country lacks today in the work of ethics. that corruption (adharma) triumph and corruption (kaurvas) to the majority. but he still hoped that not only survive, but the world of 2025, when people begin teaching Geeta in the proper sense.
it is believed, director Indian Institute of Management professor preetam singh was the mantra can save the country. he spoke on “the challenges of modern management lessons srimad bhagwat Geeta” in a function organized by the Mission mahamana malviya University lakhnau Thursday.
“I believe India has made tremendous man of power and the brain and if we continue to produce experts institutions such as IITS and IIMS days are not far when we will be able to resume the process of colonizing the world, “he said. He said that although in the philosophy of the management of India is so rich in the conduct of factors such as Geeta, nor Indians gaze to the west to be carried out. “We are working with foreign capital (Western thought) and are not using our own actions (Indian intellectual richness),” he said adding that Indians suffer from the slave mentality. ”
in his usual best prof singh pointed out that the main reason why the Indians were left in the race for development was only because people talk about “rights” (FAL) and not on customs duties (karma). “Ironically, our Constitution has more weight on the” rights “of citizens, but was designed for tasks smoothly,” he said. the second, he pointed out, the country lacked vision visionary. “kaurva powerful empire collapsed because their king was blind dhritrashtra (not physically, but under the influence of love for his son),” he said, adding that the Pandavas (quality) have always been in the minority, but since they Gyana (Krishna) and Dharma (work ethic), as the ultimate winner.
The development of the future management system, said Prof. singh 21 century, there will be no bottlenecks in the hierarchical structure of management. Only the best survive. He was also taught in Geeta. “While kaurvas, there has been an ongoing dispute, which would have the effect that the army, in Pandava camp itself the” first “decided a driver (sarathi) and there were no conflict of power, “he said. Highlighting the role of “ethical trade,” he said, that corruption “incorporated inefficiency” led to increased production costs.
he felt pity that today, there was no respect for gurus and achaaryas among students. Worse still, the situation was, as he said, for failing teachers, role models for students. as a result of movie stars, symbols, “he added.
Develop on the importance of good vision and dedication, he says, as Madan Mohan malviya convinced people to donate generously for a noble cause, such as the construction of benaras Hindu University. on the occasion was read Pro-Vice Chancellor Prof. sb Singh, general secretary of the mission malviaya pn Srivastava and senior leaders Corporation and power to other public sector enterprises.

NEW DELHI: exporters can look forward to help from the government for the suffering caused by the floods in value of the rupee. The government is considering a bailout package, the best repayment of freedom and tariffs pass book (DEPB), the rate of credit, exemption from the tax service, the reduction of insurance premiums and lower fares credit insurance for export.

In addition, banks over 15% of credit guarantees to export to pay. “The Ministry of Finance is invited, service and reimbursements exemption for exports of the announcement of the foreign trade policy, without delay, the Minister for Commerce and Industry Kamal Nath said Wednesday after a meeting with representatives of various organizations for export.

The rupee is 9.7% since December and nine years reached a peak of Rs 40.28 late May. The currency is indeed risen from 13% in the past two months alone, verbeulend the competitiveness of Indian exports. More importantly, textiles, leather goods and services exporters were hit, given that the United States is the largest market for them.

“Due to the rise of the rupee, the realization of chemicals increased by 12% and 6.5% for textiles. Dip Exports are expected to be 20-25% for processed food products and the Agriculture, objects, electronics, electrical equipment and steel products, “Federation of Indian Export Organisations (FIEO) GK Gupta,” said the President.

The ministry Commerce North Block, the tax rate to neutralize DEPB-systems such as the refund of customs duties, and 5%. The Ministry of Finance was also asked to reduce the interest rate on the pre - and post-issuance of credit issuance of 6% to 9-11%. The government can also exchange income groups’ foreign currency accounts interests.

“Every terminal residues of excise duty and VAT, the central reimbursement would be deleted by June 30. The Export Credit Guarantee Corporation to reduce their premiums of up to 10% with immediate effect, “said Nath. With 8 million new jobs expected, suffer due to the slowdown in export-oriented industries, the government soon submit a panel to assess the loss of jobs and new markets in the recovery Rupee.

The Committee, under the leadership of Secretary additional R Gopalan, representatives of trade, the textile and labour ministries, the Director General of Foreign Trade and Indian Institute of Foreign Trade. It will submit its report within 30 days, “said Nath.

Exporters have also stressed the Finance Minister P Chidambaram emergency assistance to cope with the challenges arising from the development of the rupee. Now they are planning a petition to the Prime Minister’s Office, cited the risk of job loss, while others will be affected. So far, there are no signs for the Ministry of Finance, the proposed bailout package for exporters.