Tax! Tax! Guys, what are these taxes? We are told that very few people in our country pay tax. But, how true is this? Even youth have a lot of myths about this. Let us see what some youth are talking about tax.
Ravi: Hello, how are you? Today you made us wait for so long.
Sanjana: Hey nothing man, was just watching the news. Do you know that? Now, due to GST, the tax we pay on the purchase of goods will be less.
Ajay: I have also heard a lot of news about GST. I have seen everyone saying that GST is a very good step. This will benefit everyone. But it is not clear to me what this GST is.
Sanjana: With the introduction of the GST (Goods and Services Tax), only one tax will be levied in the whole country, on all the goods and services except for a few things. It says that the prices of goods will be reduced and the GDP of our country will also increase.
Ravi: Think a little deeply, friends. Whatever is told through the media, is not the whole truth.
Sanjana: So, what do you mean, in the newspapers we read, we see in TV, that is all lies? Then how will we know the truth? Ravi, you speak anything.
Ravi: Indirect tax increases tax liability. And GST is also an indirect tax. So we have to first understand what an indirect tax is. Indirect taxes do not reduce the prices of things but increase. It is used to rob our hard-earned money.
Ravi: Tell me, do you all use the mobile, it has to be recharged?
Ajay: Yes, then?
Ravi: When you recharge with 50 rupees, do you get full talk time?
Sanjana: No man, I only get the balance of Rs 44.21, the rest of the money goes into service tax, etc.
Ravi: Meaning, whether you earn something or not, even if you earn 1 lakh in the month or 10,000, this service tax has to be paid. We have to pay taxes to buy a matchbox or even an expensive vehicle.
Ajay: Yes, you are absolutely right, yaar. I have not thought about it. Whether a man is poor or rich, everybody has to pay tax. On the TV, they say we only pay annual tax, but if you think like this, we unknowingly pay the tax every day and do not even know how much we pay.
Sanjana: Think about it, it is very clear that every woman / man in the country pays the tax. The students who have not even started earning have to pay tax. A friend like Ajay who has just started earning, whose income is not enough to run his house, he also has to pay tax.
Ravi: Whatever is told or spread through the media, is not the whole truth. Income tax and corporate tax is only one part of the entire tax system, which are called direct taxes. The second part of the tax is indirect tax, which includes custom duty, excise duty, service tax, entertainment tax etc. Media hides the truth about these indirect taxes from us. That is why I say that the media does not tell the whole truth.
Sanjana: You have pointed out a very important thing.
Ajay: You opened my eyes.
Ravi: The second thing is that last month I had done a project on this subject. When searching on the Internet for that project, I came to know that in 2014-15, two-thirds of the total tax came from indirect taxes and only one-third from the direct tax. In every budget, there is an increase in the number of exemptions in direct taxes and increase in indirect taxes.
Sanjana: Does this mean that the poor pay a higher tax than the rich?
Ajay: Now after thinking, what I feel is that everybody pays the tax for whatever he buys for a living. You are right that the rich pay very low tax in proportion of their income. On the other hand, for people like us whose income is very low, a large part of the income is being used for paying the tax.
Ravi: Absolutely, we should raise the question that why do students like us who have not even started earning so far, should pay any tax. Why a young man like Ajay who just started earning now, whose income is so low, why should he also pay taxes? We should demand that indirect taxes be removed completely; we even do not know how much tax we actually pay.
Sanjana: Ravi, your question is absolutely right. I think we should talk to our friends, should warn them about the reality of indirect taxes. If we raise voice alone, nobody will listen. Only if we come together something can be done.
Ajay: Yes, I also will talk to my friends, I will explain them. Unity is our real strength.
Ravi: Okay guys, we will tell our friends about it.
Sanjana: But, that was about indirect tax. What about GST?
To be continued…