Indian Tax System and Effect on Central Government Employees.
Comrades,
The
Central Government has been informing the general public that crores of
rupees were spent on salary and pension of Central Government
Employees. In fact the following are facts out of total revenue of
Central Government the share of CG Employees towards Salary, perks and
pension amount is just 10.47 % of the total revenue of the Central
Government which was earlier 16% at the.time of 6th CPC. They are in
forming that 7th CPC will cost exchequer Rs 25,000/ thousand crores
which will effect Central Government finances.
Secondly the
Central Government Employees are paying tax for every rupee they earn
including the all allowances, in fact the 5th CPC has recommended that
the Central Government should not deduct any Income tax on these
allowances. apart from income tax, all other taxes are also imposed just
like other employees.
Further the Fifth Central Pay commission
in its report vide para no105.12 has said that Dearness allowance should
be paid free of net taxes as the DA is paid for compensation against
price rise. The all allowances should also be paid net of taxes which
has been examined by 5th CPC in para no 167.
Today according to
various media reports, only 2 to 3 percent of Indians pay any income tax
at all. In December, India’s finance minister, Palaniappan Chidambaram,
said that 2.89 percent of the population (about 36 million people)
filed income taxes. (In contrast, in the U.S., about 45 percent of the
population pays taxes, which means that, despite India’s much-larger
population, more Americans than Indians actually pay taxes.)
CLICK HERE FOR DETAILS .
Totally
a Central Government employees pay upto 30% of their salary as all
forms of tax to the Central Government, even if these is any increase of
salary upto 40% then also,part of the increase will also go to Central
Government as revenue.
India's tax revenues nearly about Rs 14
lakh crore currently can be increased to over Rs 40 lakh crore. if
proper taxation policy is adopted , that means majority of citizens of
the country should be uniformly taxed.
Corporate tax collection
is at Rs 2.05 lakh crore, the personal Income Tax collection, however,
was at Rs 1.19 lakh crore that is just 10% of the total revenue
collection.
According to Central Government sources Corporates
owe over Rs 2.46 lakh crore in taxes, total tax dues to the Central
Government is around Rs 5 to 6 lakhs crores. The amount paid to CG
employees for the 7th CPC is just 5% of tax dues to the Central
Government.
CLICK HERE FOR REPORT so there should not be much financial panic on 7th CPC impact on common man.If
these dues are properly collected then Central Government can spend lot
of money on the welfare schemes and also pay the Central Government
Employees being a model employer handsomely pay us on par with the
global market, Software companies.
So comrades , the Indian tax
system should be re modeled so that proper tax system is there and every
citizen of India should have uniform tax policy andCentral Government
revenue should also improve and also the Government Employees are paid
need based minimum wage or a decent wage, also filling up of vacant post
in Central Government will also give employment to younger generation.
Comradely yours
(P.S.Prasad)
General Secretary
Source : http://karnatakacoc.blogspot.in/