Introduction of Debit Tax in India
Now Friends at the Risk of sounding Foolish, I would like to say something which has been spoken about in different manners in different parts of the world — the concept of a debit tax after scrapping of the present income tax rule. I envision my country to be free of income tax . My country should be a place where we have debit tax which means a certain percentage close to say about 0.33% to 1% is levied on every product right from goods and services to property and inheritance. This will entail a large population to come under the tax ambit . With the removal of income tax, the feeling of wanting to evade taxes will reduce considerably. One of the primary reasons for removing income tax is that there will be more in hand income in the hands of people. This is an added advantage. The state coffers can be replenished better than the previous system of income tax and the taxes can be deposited electronically resulting in more transparency and less leakage. A lot of income which has been stored illegally may also enter the financial system. This will surely increase the spending power as well as decrease corruption. This is just my thought. Jai Hind.