Do we need more taxes or more tax payers to develop our country?

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Do we need more taxes or more tax payers to develop our country?

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It is beyond doubt that we certainly need more tax payers for the development of our country and there are many examples of people who just avoid paying taxes which is not good for the overall development and progress of our country...
We need more resources for developments. The overall tax collection is not so significant as net collection that is gross tax minus cost of collection. Ideally, everyone shouldf pay tax. But cost of collection of very small amount will be disproportionate and less economical. That is why there is tax free limit for direct tax. Almost every one pay indirect tax on consimption of goods and services, particularly the branded ones.

The net revenue collected i.e. gross minus collection expenses is more significant than number of tax payers.
If everybody who comes under tax brackets pays there will not be any need to may more taxes to develop India.
It's true that given to the overall size of our population the net collection is still very small. One feature of this collection also shows a skewed element of indirect taxes bringing more to the exchequer!

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Created Friday, 22 July 2011 22:07
Last Updated Tuesday, 30 November -0001 00:00
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