Editorial Simplified : 23rd Day of June 2016
This Series of posts covers the essential Editorial from prominent newspapers. The Editorial from the newspapers are compiled by the Subject Teachers form the Academy and provided in notes format so that the aspirants does not waste their precious time in sifting through the newspapers.
The aspirants are advised to bookmark this page for future reference
Click on the tab below to read the Editorial Simplified for each newspaper
Editorial : The 10-crore rollback
A purported target of 10 crore tax paying houses was allegedly set by the Prime minister recently and then targeting denied. The editorial studies the situation.
- The Revenue Secretary denied setting up of any tax payer target by the government.
- Even if it was a mere statement of intent it was an ambitious one for India, a country where direct tax rate has grown at snails pace.
Facts on Indian tax regime
- Just 4% of voters are individual tax payers, well short of desired 23%.
- India’s tax to GDP ratio is far lower than average of emerging market peers.
- About 85% economy is outside the tax net.
- The number of tax payers who reveal earning of 1 crore a year or above are unrealistically low.
Steps taken by government to improve the situation
- Wealth tax has been replaced with surcharge on super high incomes.
- Luxury car sales have been taxed to data base potential evaders.
What needs to be done
- A more proactive strategy is needed to widen data base while prioritising public spending on services.
- Corruption needs to be curbed and an effective property tax regime established.
- The number of transactions requiring PAN card details should be increased.
By doing away with 10 crore target, the Centre has perhaps missed a trick.
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