India is Soon to be a Sri Lanka through Triple Taxes!
Indian Economy is going to dwell in the ocean of bankruptcy like Sri Lanka unless it cuts the “Triple Tax” formula.
“A New India is Born” gets shouted after implementing new policies from the ruling government in the center.
Whenever such a slogan arises, Indian people drown in fear for the difficulties they may face because the newborn child would be an operated one with repaired/extra repaired kid with nutrition deficiency.
That’s the case earlier. That’ll be the face in the future as well (due to the policies announced). Earlier, reformations were made neither on political nor ideological processes but on the economy.
Implemented policy’s only idea is to bring the power from the states to the central government. So, the ideology of accumulating the taxes (money) focused on the center. But the central government’s policy is “Minimal Governance,” and this is where contradiction begins.
Taxes go for two purposes:
- Maintenance (Salaries, services, refurbishments, and a lot more)
- Development (implementing new schemes, infrastructure, and everything towards the future)
Salary constitutes a critical part of state bodies (say Tamil Nadu — 40%), whereas the central government contributes around 8%. Like this, the government is spending a proportionate amount on maintenance (& services offered), and the remaining is on development.
Here comes the twist — nearly half the taxes are concentrated on development, but government proclaims “Minimal Governance,” which is contradictory to development? (as it requires max supervision).
Minimal-Governance planned through the privatization in all eligible sectors (including Defence).
Privatization may help from the loss, as few industries led by the government are facing losses (Airlines, Telecom, Transits, etc.). The problem — is the government is listing even the profiting public sectors too to the privates — including Mining, Gasoline, Insurance, and a lot more.
Now Indian people are living in the era of triple taxes
You may wonder how we got three taxes if every industry has become private property. Government taxes, classified as VAT (Value added taxes) & GST (goods and service tax) — are collected for everything provided — including purchases, transactions & more. Apart from this, private collect a specific amount as a “service charge.”
For example — Private took over National Highways completely, yet, “Road Tax” is collected through fuel and insurance for central and state governments. Also, the private collect “Toll” charges for laying the roads and development. In addition to this — the Centre collects a “CESS” tax for “Road & Infrastructure Development.”
Various tax forms — VAT, GST, and service charges come under State and Centre divisible rule (one portion for state government & the other is for the center). The “CESS” is specifically for the Centre, and the state cannot claim any value from that.
Here, the state government used to lay, maintain, and other related conditioning to road and transport safety under municipal corporations. But Where do the taxes to the central government on roads go?
Apart from high-security risk premises, laying roads are contracted to private firms. So, the center’s taxes on roads mostly goes in vain. The other CESS collected in fuel is to develop infrastructure — that favors “Privatisation” quickly, cough Adani’s cough.
Irrespective of all the allegations, Fuel prices are increasing every day or the consecutive days.
For a New Policy or a scheme (that requires money), every country borrows funds from IMF. The amount will get sanctioned after implementing a few conditions like — increasing the fuel rate or other costs of basic amenities (for easy & quick repayment — but that’s how a country’s inflation rate gets manipulated).
Being privatized, and a notion towards minimum governance “what’s the need to increase the basic’s cost?” (Every day) and imposing that value in an indivisible scheme with the states.
It is either to speed up the privatization or to test the survival capacity of the people — from a civilian’s POV.
The current inflation rate is >15%” in the current financial year (and it is the highest ever recorded in Indian history). It helps the drama dialogue writer’s famous quote “Rich becomes richer, poor become poorer” come true.
Fuel prices directly influence the transportation of raw materials — increasing in value (daily). It has been only inclining. It directly impacts the lives of laborers and monthly salary makers to dwell.
Business people and price deciding authorities hold powers to keep up with the inflation — increase/to consider the rate accordingly. The work structure should deal with their monthly “standard” income to meet the fluctuation and existing commitments. This method standardly increases the profit of deciding authorities.
Recently, Luxury car owners have increased drastically in India — due to the factor mentioned above.
Labour Class in India
Only a portion of India constitutes the developing label. People from underdeveloped regions move towards the industrial hubs around them to thrive. So, most firms (small & medium scales) employ these people (for minimum wage — that’s the only opportunity).
This immigrant labor structure fumbles the working-class locals and their future. Now, locals have to run along with the immigrants and suffer the lower economic status (which has no scope to develop near).
Businesses are the only scope for development on micro & small scales, but the working-class community cannot attain that state easily in their “near future” due to low wage politics and the rising inflation. So, better life opportunities got closed for them.
You can’t rely entirely on the business sector on a micro and small scale — as they are not the direct price deciding authorities, and they too have to deal a lot with inflation and mortgages.
It increases the chances of the big sharks taking over such small-scale industries in their buffet. So, the industrial sector is heavily becoming a monopoly.
Either you are one of the great Indian business persons, or you should be working for them. There’s no other clause in between. It is why? The Indian economy and the policies are rusting the Indians and heading towards a doomsday.
CG’s Economic Activities
The government is playing cards with people’s minds, and there’s doubt among the economists “whether this government can think from an economist’s POV?”
The CG’s funds majorly go to buildings, advertisements, and buying things rather than on policies. Recently, the government has become fund deficit and even used the RBI’s foreign reserves (which were stored to face the economic crisis in the future).
In case of a sudden emergency like a pandemic, war, or a high-level natural calamity, the eligibility of India to withstand such a situation is highly doubtful.
Reviving the economy from a disaster is a huge step, and the high level (authorities) have to work on the low level (as they run the economy). Based on that and discussions with a few economists — few are discussed,
- Bringing the working class under a structured payment mechanism, ensuring an even minimal wage (throughout the state) and assurance to meet the inflation.
- Waiving the Tax of rich people should be stopped, and ideas should get implemented on regulating the cash flow, contributing to the small and micro-scale.
- Plans should be on long-term solutions instead of short-term escapes.
That’s how balanced governance could be achieved, along with the growth. If your country is not on the list of the mentioned rules, then it’s high time that you are drowning in the ocean.