Sanjha Morcha

More taxes for people Higher growth, revenue for govt

It is a toss-up: cheer India beating China in growth and continuing to be the world’s fastest growing economy or crib about rising unemployment, growing inequalities and the new dose of taxes effective from June 1. Ruling politicians sell hope to stay in business even when experience says that they seldom deliver what they promise. At their own expense and in case they did not notice, citizens are being told what wonderful two years of Modi governance they have seen. Embarrassingly, one-fourth of the world’s hungry population is in India.Many may not mind paying Krishi Kalyan Cess or Swachh Bharat Cess provided the money is used to help the drought-stricken farmer and removing the ugliness that hits the eye. The service tax hike may appear small, just 0.5 per cent, but its spread is large. Eating out, using a phone, travelling or buying a home or a car, almost everything becomes costlier. There is another 1 per cent hike in the tax collected at source on cash purchases above Rs 2 lakh. Besides, the petrol and diesel prices have gone up again. The reason: oil costs more now globally. When world oil prices had plunged, the government did not pass the entire benefit to consumers. What kind of oil decontrol is it? Simultaneously, the government has given black-money holders an opportunity to turn their unaccounted wealth white by paying a small amount. It is an admission of failure to catch the tax evaders. Last year, a similar window was opened for those holding undeclared assets abroad.It would hurt the taxpayers less if they are sure their money would be used for the greater good of the country. Nobody would like to pay for government extravagance, for marketing Modi or sell his events at home and abroad. Every government decision and normal activity is so packaged that its mere announcement is supposed to spread good cheer. It does not matter if the 7.6 per cent growth is jobless driven by private consumption and “discrepancies”, as economists point out. The citizens are invited to feel good in the times of drought and unemployment.