India’s tax system highlights a stark disconnect between taxpayers and the public services they help fund, leading to widespread dissatisfaction among the middle class. Those who pay income tax—a small percentage of the population—rarely rely on government schools or public hospitals due to their perceived lack of quality and infrastructure. 

Instead, they turn to private alternatives, incurring additional costs despite their contributions to the exchequer. Furthermore, after paying income tax, taxpayers bear the brunt of indirect taxes like GST on goods and services, fuel prices, tolls, and levies on insurance and automobile purchases. This double taxation, combined with limited personal benefits, underscores the challenges faced by the taxpaying segment of society.

In contrast, many developed countries impose higher tax rates, sometimes up to 50%, but offer universal healthcare, free or heavily subsidized education, and other tangible benefits to their citizens. This creates a sense of reciprocity and trust in the system, as taxpayers can see the value of their contributions reflected in high-quality public services.

In India, however, significant portions of government spending are directed towards populist measures like free ration schemes, electricity subsidies, and allowances. While these initiatives aim to support vulnerable sections of the population, they often do so at the cost of neglecting systemic improvements in public infrastructure that could benefit everyone.

The frustration among taxpayers also stems from the government's prioritization of projects like building monumental structures and statues worth thousands of crores. While these may hold cultural or political significance, many believe that such expenditures divert funds from critical areas like education, healthcare, and urban infrastructure.

A more balanced approach would involve investing in long-term public goods that enhance the quality of life for all citizens, including the middle class. Addressing this disparity requires a shift in policy focus toward sustainable development, ensuring that every taxpayer feels their contributions are effectively utilized for collective progress.
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Tax Payers India

SIBY JEYYA

16/11/2024 08:57 AM