India Tax Payer - Forum

Posted: 11-03-2011

Service tax has been the major contributor to the central exchequer since the day it was introduced.

The delay in implementing GST, it is said, is because of the strong contention between the State Governments and the Centre for sharing the public money, we call as Service Tax!

Finance Minister has not hesitated to fish in the troubled waters more. While over 50% of the GDP comes from the Service Industry, the Centre has been slowly and steadily introducing the service tax for every one of the services. Two of them escaped the tax man's loop till now and they too fell victim this time.

The Health Industry and the Legal fraternity!

May be the legal fraternity might cringe at this new addition to their troubles, the Health industry is not taking this easy. This tax is going to reflect very badly on the poor and the needy; specifically those who are fighting for their lives.

India has never been a welfare state. The governments in India have been only taking money from the public and giving back hardly anything. Most of todays projects and the rapid growth is spearheaded by the private sector and not the public. Even the much publicised golden quadriletral and the other road projects were invested on a BOOT basis by private agencies and they are still collecting tolls from the passerby.

Naturally, what the government spends on health care is less than 5%. What they spend on PDS and other related work is about 17 Crores!

Government has no valid reason to increase any tax in any form. As a matter of fact, the government should let the people know what they are doing with all the money they are collecting and how to optimise the usage of the money collected, rather than increase the tax revenue further.