Friday, 24 May 2013

How much Taxes do you pay?

A very important question that we face atleast once every year...Paying taxes...some might say they have a 3 Lakh package & by investing in various schemes like LIC PF etc, they end up paying Nil taxes. Good isn't it?
Wrong, majority of Indians including educated ones don't know that they don't just pay Income taxes, but almost every other tax levied by government in some or other way which are commonly known as indirect taxes. For eg. 12% Excise duty is levied on goods manufactured and although paid by manufacturer, passes onto buyer...similarly 12% service tax,4% -33% sales tax, VAT,etc all are paid ultimately by you, the consumer.
For instance lets take petrol,its Net cost of one litre excluding taxes is 42 Rs and the taxes you pay on 1 Litre is 30 Rs! That's a whopping 43% of total price. Assuming your yearly expense on petrol is Rs 24000 (2000 per mth) you pay its 43% ie 10320Rs as taxes to govt! You can only imagine the amount of total taxes govt receives only on petrol. Maharashtra receives 70% of its total revenues from VAT on petrol alone!
And this is only one product...countless products are there which you buy having excise,VAT,ST  which you pay indirectly and hence your tax payment to govt can be anywhere between 15-35% of your income even if you dont pay income tax. That is One-third of your life spent in earning money to give to corrupt govt & get peanuts in return. Even if a poor man buys biscuit of 5 Rs, he pays about 1rs as taxes.
After this much taxes every individual ought to receive good amenities. But on the contrary, taxpayers' hard earned money is being used for lavish living of Politicians, bureaucrats,crony capitalists as they all receive share in schemes of govt, through corruption & leakages, which are funded by our money.
Its the duty of every educated person to atleast know how much taxes they are paying & hence how much getting in return from government , and make every person aware that how much taxes is he actually paying!