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What happened to my taxes?

By A concerned netizen

RECENTLY, in my city, the Municipal Corporation constructed underground drainage system. Pipelines were laid underground along the streets. The idea was to connect these pipes with the residences and the sewage can be carried underground to a treatment plant. The corporation had to spend a few crores for this project and they found the best method to get the money back. Just collect the user charges from the Citizens! As there was a stiff resistant from the residents to pay huge charges and take the connections; several meetings were organized to cajole the people to volunteer to pay. In one such meeting, a concerned citizen asked “We pay property tax to the Corporation. This was supposed to be meant for providing drainage system, drinking water, sanitation and roads. If you ask us to pay separately for drainage, may be a day is not far off when you ask us to pay for street lights separately, water separately, sanitation separately. Then what for the taxes are collected?”

The concerned citizen may not be aware that this is what the Government of India is doing right at the moment. During my school days, I was told why the Government levies taxes. I was told a lot of money is required to build roads and bridges, develop infrastructure, to provide basic amenities like education, heath etc. Taxing the citizens is one of the prime and perhaps the main source of revenue for the Government. I was always under the impression that the revenue from the taxes like income tax, excise and customs duties is being used for the above purposes.

But I was rather surprised when the Government levied a surcharge called Education Cess in the 2004 Budget. The objective was stated as “to fulfil the commitment of the Government to provide a quality basic education”. There was no big discussion or opposition about this surcharge in the media, but, then who can oppose to such surcharge when the objective is so genially worded! They thought by paying this surcharge they are indeed directly helping the poor and needy to have access to better quality education. Have you ever noticed the fact that the orphanages that identify your donation with a particular child are more attractive than the other charities where you don’t know how/where your money is being used?

But the story did not end with education. This year there is a lot of speculation that there is going to be another surcharge. This time may be on health. The objective may sound something like “to fulfil the Government’s commitment to provide international quality health to the poor”!

Well, we are already paying separately for the roads and highways by way of additional duties on fuels like petrol and diesel. We are already paying for the education separately. We may have to pay for health. We may also have to pay for defence. The list is endless.

But the fundamental question remains. What happened to my taxes?


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