The stark disparity in the number of taxpayers in india, where only 7.28 crore people out of a population of 140 crore file income tax returns, raises critical questions about the fairness and sustainability of the country’s tax system. Many of these taxpayers are responsible for funding the vast welfare programs that provide free ration and subsidies to around 80 crore individuals.

While welfare initiatives are essential for supporting vulnerable sections of society, the burden on the relatively small group of taxpayers becomes increasingly heavy, leading to frustration. The feeling of inequality is further amplified when taxpayers see little accountability for how their contributions are utilized, and when large swaths of the population, such as rich farmers or politically connected individuals, benefit from tax exemptions or pay little to no tax.

Another point of contention lies in the special treatment enjoyed by political entities and representatives. Political parties in india are eligible for 100% tax exemption on all income sources, a privilege that has long been a subject of debate. Similarly, Members of parliament (MPs) and Members of Legislative Assemblies (MLAs) enjoy various perks and tax benefits, which create a sense of inequity among ordinary citizens. While the average taxpayer is required to meticulously comply with tax regulations, political figures and entities often appear to operate under a different set of rules, insulated from the financial pressures faced by the common man. This perception fosters resentment and questions about the fairness of a system where the majority of the tax burden falls on ordinary citizens, while political elites and wealthier groups receive exemptions.

Furthermore, the issue of rich farmers receiving full tax exemptions highlights another dimension of the problem. While the exemption of agricultural income from tax was initially intended to protect small and marginal farmers, it has inadvertently allowed wealthy farmers and agribusinesses to take advantage of this provision. This loophole not only leads to a loss of revenue for the government but also exacerbates feelings of injustice among regular taxpayers, who see their hard-earned money being used to support subsidies and benefits for individuals who are often in a better financial position than themselves. The frustration felt by many taxpayers stems not from the act of paying taxes itself but from the sense that the tax system is skewed in favor of certain privileged groups, while the burden of funding essential services and welfare programs falls disproportionately on the shoulders of a small segment of the population.
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SIBY JEYYA

23/10/2024 09:01 AM