Taxation policy needs accurate data

Taxation policy and our Data System

This refers to the debate "should there be a super rich Tax?" ( Business standard Feb 29,2012).The concept of super rich tax has been engaging the attention of advanced countries for quite some time and even some of the highly rich individuals in these countries have volunteered to contribue to rescue the economies from financial crisis.The taxation policy should be very fair and those who earn and accummulate wealth have to naturally come to the rescue of the poor who are not only below the poverty line but are also virtually starving without even a single meala day. The equitable distribution of nation's wealth is the responsibility of the Govt and it is unfortunate to observe that only 3 percent of our population is paying tax which is absurd and not tolerable when nearly 80 percent of the population lives on less than Rs 20 a day and 77 percent of our Ministers and 300 MPS who frame the policies for the people are millionaires.
This sort of situation naturally gives room for doubt whether the economic policies so far pursued in the name of AAM ADMI have been on the right track?The major problem faced in the economy is the absence of accurate data/ information and the economy which supports the whole world with its Information Technology power has not been able to put into optimum use of its IT power to generate proper data system. Mr Kamath Chairman ICICI BANK and Infosys is right for his observation under Chinese Whispers colum next to the debate column BS dated Feb29 that there is a lot of growth that gets lost due to inefficiencies in our data collection mechanism ,largely omissions and there is growth that is not recorded in the system. This is more or less true in our data relating to tax, people below poverty line, inflation, employment etc. It is time for the Govt to aim to capture exact data so that the policies that are pursued towards eradication of the ills of the economies achieve the desired result. Even the Governor of the Reserve Bank once sounded on the need for accurate data to frame policies. Taxation policy needs all the more accurate data to assess and decide equitable distribution of wealth of the nation.


Dr.T.V.Gopalakrishnan

( An edited version of this appeared in Business Standard dt1/03/12)

Sharing of wealth in India

It is a shame that Indians have to be advised by outsiders on Dharma for sharing and distribution of wealth among the needy.Indian culture,heritage and philosophy speak very high of dharma and the real joy of life is giving and not taking and accummulating.The politicians and bureaucrats have looted the country and enabled a few industrialists to amass wealth through wrong taxation and other economic policies. Some of them share a part of the wealth to earn a name and gain tax benefits.Some are looting even in the name of charitable trusts and charities. Govt sponsored schemes to aid the poor are avenues for free loot and the money does not reach the intended beneficiaries. Loot is going on in the name of spiritualism and there are no checks and balances. Ethics and values have been given a go bye and for survival one has to be dishonest, corrupt, disloyal,and 420 in letter and spirit. Honesty and straightforwardness are openly condemned. Corruption,blackmoney,and out of the way dealings are openly encoraged and anybody raising voice against mal practices and irregularities are taken to task and harassed.Morals and Principles in day to day life have become things of past geneartion and very talk of these things are looked down upon with contempt. Before we beg the wealthy to distribute their wealth, let all Indians learn to introspect and realise that over a period we have discarded values, morals, and ethics which our ancient culture and civilisation were once proud of.

Dr.T.V.gopalakrishnan