It's common knowledge that in India the majority of people don't pay taxes. Still, the government is expected to spend on everything and at the same time control the fiscal deficit. If, through Information Technology, we can increase tax collection, it will greatly benefit the nation.
THE GOVERNMENT must do everything to ensure that tax payers are able to pay their taxes in an easy and simple manner. At the same time, the government must also ensure that a good system is created whereby every business house indulging in financial transaction of any kind does pay their taxes.
Going by past reports, it is reckoned that about 30% or so of the population do pay their taxes that come under genuine salaried class of people. This tax money is proving insufficient for the government to borrow for spending on projects that could be termed as government sponsored projects. A portion of taxes collected goes for the armed forces and a portion goes for subsidies leaving nothing much for the government to borrow for other expenditure. This could be a reason for the fiscal deficit going up at times beyond manageable levels.
It is also a fact that sections of the business community in India are involved in doing business by buying from wholesalers and selling these goods on retail basis. Many of these business houses do not have any MBA sort of degrees but purely by simple business logic are able to churn out profit by selling goods on retail. However, many of these do not come under any tax purview.
Through Information technology, if systems are created whereby any financial transaction becomes transparent, the task for the government will become that much easier to bring in many sectors under tax groups including the above. Judicious management of the tax generated incomes will also become that much easier once tax money starts flowing in from different quarters. Many vital infrastructure projects can come up that much easier and faster with enough money being at the disposal of the government. Also, uniformity in tax systems will ensure that common man’s feelings on this subject matter are not mixed ones.
Somewhere a beginning has to be made to make the above doable all-round. Experts’ opinion can be sought to make the above doable with inclined acceptance by the masses.