Letter to Chief Economic adviser and Tax Nationalist

Dear Chief Economic Adviser,

Sir, Economic Survey considered the document which evaluates Government programs and provides detail economic analysis of the key development proposals. But your entry in Finance ministry changed this scenario. I have noted that since last 2-3 surveys, you are giving lectures to the citizen about their Duty to pay tax. You provide numbers of Analysis to prove your point that Indian Do not pay a tax that they should pay.

This are the first lines  of the 4th chapter of this year’s economic survey: - As Besley and Persson (2013) note, there is a social contract between citizens and the state. “The state's role,” they write, “is to create the conditions for prosperity for all by providing essential services and protecting the less well-off via redistribution. The citizen's part of the contract is to hold the state accountable when it fails to honor that contract. But a citizen's stake in exercising accountability diminishes if he does not pay in a visible and direct way for the services the state commits to providing. If a citizen does not pay, he becomes a free rider (using the service without paying), and cannot complain if the state provides a poor quality service. If he exits (not using the service at all), he loses interest in holding the state accountable. Only if he pays and uses the service will he try to hold the state accountable. Hence the expression: no representation without taxation. In other words, taxation is the economic glue that binds citizens to the state in a necessary two-way relationship. (Economic Survey 2015-16, Chapter 7).”

            Dear Arvind sir, if you read these lines carefully – You may understand that Besley and Person emphasized first on the Government to Create Condition to ensure the prosperity for all and Provide essential services. And only then after, Besley and Persson asked the citizen to pay taxes. You are giving lectures to the citizen through the Economic survey but I know you can’t dare to teach economic lessons to your political masters. So let me show you mirror.

In Ancient India, When Lord Rama Flew to Ayodhya in the Pushpak Viman, at that time also the roads of the Ayodhya were constructed by the State Ayodhya run by Lord Rama. You are an Avid reader and so you must know that form Plato to Chanakya – all considered the Road construction as a state responsibility. On another hand, what your political masters are doing? Due to Low Tax revenue, you are building a road on PPP base in which citizen have to pay a toll – It’s understandable. But you go ahead and your government decided to Auction the Road build by public money to raise the amount for the grand promotion events for the government. Now sir please tell me Is there any moral ground left or you to ask a citizen to pay tax? You won't believe sir, But my heart stopped beating for a while when I read this news NHAI seeks to auction 1,720km of highways

Now, Let's come to your political master's desire to present himself as the “Global leader”. Earlier in 2014, there were rumors that PM Modi took a soft stand against Pakistan in the desire to get Nobel peace prize but under public pressure, Government had to conduct surgical strikes. But still the desire to call “Global leader” remains Intact. Due to this, India signed and ratified the Paris climate change where India accepts the larger responsibility toward climate change.

On the name of the “Climate change contribution”, Your Political leaders introduced coal cess of the Rs.50 few year back. Now it increased to Rs.400 in just 3 years. Candidly this growth rate is much faster than the Jay Shah sir! But on the Serious note, This cess cause of the Higher electricity tariff and it increase the cost of each manufacturing sector. Higher cost made our product less competitive in the global market and this finally resulted in less employment. Sir, Why Don’t you remove coal cess and introduced Air condition cess which produces HFC which are 20,000 more harmful than the Poor carbon? In fact, this HFC cess will increase the efficiency of the Sarkari babus who become lazy in summer noon due to AC cabins!

Dear Arvind sir, You are well aware that this cess collection under “Clean energy fund” was originally mean to Spend for the Research and development of the renewable energy. But Govt chennalized this fund to promote govt flagship schemes like swatch Bharat etc. This means that Govt collects the Cess ( Tax) on the cost of the employment and used it to take up political mileage and promote PM image on global stages.

Now let me tell you about Rail and Airways. You called the Subsidized passenger rail travel as “Bounty to reach”. In the same list, you also called the lesser tax on Aviation fuel as the “Bounty of Reach”. (  I am honest enough to accept that you also mention that. Sir, I hope you also bring some honesty in next survey by providing both good and bad picture of Govt policies) But later on that, Government introduced the Flexi fare in railway to recover the subsidy while Government keeps fusing Fund to the Air India. Why don’t you come up with the Analysis on this issue in this year budget sir? Why Dont you suggest to Privatize the Air India with immediate effect.

sir, The List is long but In the end, I like to tell you that other than Income tax and GST, Indian pay Infra cess when buy Vehicle but yet Citizen don’t get jam free traffic. Indian pay education cess so that government can improve Public education but even after paying education cess, Citizen have to pay high fees in private schools. Indian also pays Agriculture cess and clean India cess. I dont know much about economics, But this collection is in thousands of crores which might be more than Budget of some poor Economies. Leave all this, Citizen pays the toll to Drive on PPP based road but even after that, He/she have to drive a car on the worst road condition. So I like to make just a small request sir, Please Give one lecture to your political bosses about the “State role to provide essential services” before next economic survey.
                                                                                               
Yours Sincerely ,
Citizen of "So call" Republic of India



Comments