How much do we pay as taxes?
I always believe that a business mind never rests. Even on a holiday. So I spent my Sunday, trying to figure out how much do we pay as taxes in India and what is the ROI (return on investment) of that amount that we are paying.
To cut a long story short, my calculations tell me, that a middle class Indian can pay over 50% of his/ her income in taxes and never even know about it. The return on this investment, can be seen with the standard of living in India and the kind of facilities Indians get.
My maths is bit weak, so I won't indulge in a jumbo bumbo of numbers. Still I can assure you that you lend your Govt about 50% of what you earn.
Taxes are levied by the
Central Government
State Government
Municipal Corporations/ local bodies
All this to make a World class India, with world class highways to cruise on which, incidentally
you need to shell out a toll tax.
Almost everything that you buy, has a tax. It is a heady mix of excise, VAT, customs duties etc etc.
All services rendered come with a burden of a service tax.
Your income is taxed. More you earn, more you got to pay as a punishment for earning more than others.
Then there are so many surcharges, cess, etc etc. which are like additional top ups to a pizza.
Furthermore, as they provide you with street lights, good quality roads and 24 hours water and electricity, a house tax is charged on the property you own in most of the cities in India.
2 broad sectors that are generally excluded from taxes is agriculture and handicrafts. That is local taxes are not charged on them. Then, if you are a very rich business house, then you may get some tax relief, depending on your equation with the political class.
Whether taxes in India are too high or not, depends on what value are you getting in return of the hard earned money you give away as a gift to your dear government. And, on that only and only you can comment.
The United Arab Emirates, has a system of no taxation and they still are building a country that is a delight to watch.
As to other countries, I am not aware of how much they tax their citizens, but I feel,
low or high can only be justified with the level of standard of living of the population.
If taxes are high, and you are getting good facilities than it is ok and vice versa.
So what is your verdict on India. Please do, share in.
To cut a long story short, my calculations tell me, that a middle class Indian can pay over 50% of his/ her income in taxes and never even know about it. The return on this investment, can be seen with the standard of living in India and the kind of facilities Indians get.
My maths is bit weak, so I won't indulge in a jumbo bumbo of numbers. Still I can assure you that you lend your Govt about 50% of what you earn.
Taxes are levied by the
Central Government
State Government
Municipal Corporations/ local bodies
All this to make a World class India, with world class highways to cruise on which, incidentally
you need to shell out a toll tax.
Almost everything that you buy, has a tax. It is a heady mix of excise, VAT, customs duties etc etc.
All services rendered come with a burden of a service tax.
Your income is taxed. More you earn, more you got to pay as a punishment for earning more than others.
Then there are so many surcharges, cess, etc etc. which are like additional top ups to a pizza.
Furthermore, as they provide you with street lights, good quality roads and 24 hours water and electricity, a house tax is charged on the property you own in most of the cities in India.
2 broad sectors that are generally excluded from taxes is agriculture and handicrafts. That is local taxes are not charged on them. Then, if you are a very rich business house, then you may get some tax relief, depending on your equation with the political class.
Whether taxes in India are too high or not, depends on what value are you getting in return of the hard earned money you give away as a gift to your dear government. And, on that only and only you can comment.
The United Arab Emirates, has a system of no taxation and they still are building a country that is a delight to watch.
As to other countries, I am not aware of how much they tax their citizens, but I feel,
low or high can only be justified with the level of standard of living of the population.
If taxes are high, and you are getting good facilities than it is ok and vice versa.
So what is your verdict on India. Please do, share in.
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