Is Indian Economy going haywire?

Letter to the Finance Minister of India: Mr Pranab Mukherjee, India’s present FM may be a trouble shooter for the Congress, and is a loyal Congressman having been the chip of the old block of its party cadres of the Indira era. He has his own disappointments in his Public life having failed to achieve his due, many a time. There is a Congress divide, internal squabbling, which has risen to commendable proportions due to the weakness of statesmanship and upmanship of many Scholars within the party who think they are full of wisdom. When the economy is in the cross roads, when growth is going haywire, fiscal deficit is taking a turn for the worst, when liquidity is a problem forcing government to borrow atleast around Rs 62,000 Cr to offset Income: Expenditure of the budget, when headline inflation has pervaded to increases the price line, food inflation has grown without common sense, when the watch dogs have to increase interest rates 12 times in last 18 months, when the greedy oil companies have been raising the price of petrol every alternate week, making one litre priced Rs 70/- when it was Rs 45/- an year ago Planning Comm on the eve of the 12th Plan estimated that it would be adequate for an Indian to go to above poverty line if he spends Rs 32/- per day, forgetting that somebody made the calculation in 1950, and present scribbling just scribbled it. Sugar, milk, wheat, rice, vegetables, egg, tea powder etc , even if you buy 200gms, it will cost you Rs150/-The Planning Commission seems to be in a mirage, inside an air-conditioned glass house throwing stones. It is Economics of the American kind suited for safari suit clad CEOs. Too bad and very sad, indeed. In a country of 1.2 billion, not even 10% are in the direct tax net. Very bad. When tax collectors become creative, the taxpayers become indigenously clever with inventive ways to avoid them. India’s core of taxes does not come to the exchequer. No body wants to part with their hard earned money. Large corporations dodge artfully while the less vulnerable sits in their stupour. The loop holes in Law help the evaders and the honest is prosecuted. Many of the millionaires amongst the Politicians, how much taxes are collected? Finance Minister, when wealth multiplies, the chances of getting more taxes from this tribe look much bright. Probe the income of the political class without discrimination. It will yield a rainbow. Settlement Commission is a tool where the rich corporates get off the hook squarely, with the country being the loser. Only the salaried class, is getting his pay deducted at source (TDS), service tax is lavished on him, hike after hike, year after year, in your budget. This lot is the sheep for your butchering. Now let us look at some ways by which you can raise the taxes without getting any fierce opposition from those who paid taxes forcefully. The Government of Bihar employed bands of singing hijras who sat outside the house of defaulters. The tax payers made no compliant. They paid up. Eunuchs demanded 4% commission for their work. The entire tax was collected. They never harassed anybody. Staged sit-ins, beat drums outside the homes of reluctant tax-payers and achieved exceptional results. Employment to hijras and money to the exchequer. There are many in India who are offering mystical services. They cast their spells tax free. The loss to the treasury is Rs millions. Theare are many others who do such services, and whose income is in five digits- kuttichattan seva, tarot, astrologers, ink astrology, star gazing, fortune telling. There are mediums who charge Rs 15000-20,000 for a sitting to talk to the dead. There are palm leaf manuscripts called nadi astrology where they will read your life with 100% precision and accuracy at Vaideeswran Koil. All of them feel that by paying taxes what they get in return. Any quid pro quo? Striptease dancing, is an art form and a form of theatre, hence it is not Service said a foreign Court. What about reality shows shown in television? Your predecessor came out with innovative idea to increase the Post card rate to 60 paise for competitive Post cards. Chinese authorities thought about an innovative method to collect taxes. Children of Parents who paid the highest taxes got bonus marks in the competitive exams and school public exams. In Philippines, it is a raffle. You send a valid tax receipt, it becomes an entry in the lottery. If your receipt is one of the 5 lucky ones to be picked up, you will become an instant millionaire. If you pay taxes, you get preference in admission. How many people will get into Tax net without Govt of India spending Rs 1/-. What about our Yoga Guru Ramdas who owns an island. He is the King of the Place, and his island a soverign state where Indian government cannot put its pie on. Any island outside the international waters is not the property of GoI nor does it have jurisdiction. Tax heavens need not be Banks. It can be such islands outside the international water limit. There are dogs, pets, and other animals, which is bequeathed wealth. But the ubiquitous taxmen touch it? Any list available? There are atleast Persons of Indian origin and expatriates in various parts of the world. In Africa (28 lakhs Indians), Middle East (42 lakhs), Europe (17.69 lakhs), North America (51 lakhs), Africa (5.10 lakhs), etc. 40% of population in UAE is of Indian descent. The emigration rate of growth is estimated at 0.8% by UNDP. If each person is asked to pay $ 100 and given an identity card for preferential services, it would earn billions of Dollars. Instead of the easy way of collecting higher revenue of Service Tax, petrol hike, interest rate hike, which look pedestrian, the Finance Ministry should go for innovative forms of taxation which will hurt nobody. There are small and marginal businessmen, traders, micro units, who fall within the taxable bracket but do not take the trouble to pay because of lack of escort service. Why does not Income Tax department recruit 1000 volunteers all over India, assign them territories, and give target to them, to introduce 1,00,000 new tax payers every month. To enlarge the tax base by 12 lakhs per annum. Every canvasser will get a commission and rewards for performance. Tax audit and investigation into tax not paid but hidden should simultaneously go with prudent tax net widening. This can be done quietly with rewarding results. Finance Ministry should become innovative, pro active and project a human face. ********