Tuesday, 3 December 2013

Collection of taxes

Problem: 

We use unscientific methods to collect and spend the taxes. Most of the taxes are collected by the state and central governments. These taxes are used through various plans and schemes of the government for the states, towns and villages. The money gets siphoned on two levels. 

One at the level when it is being collected that is on the upwards journey to the government treasury and then when the money is spent that is on its downward journey. What is surprising that the collected taxes on the local levels are not spent on the local level? The people are totally ignorant as to where collected taxes have been used? 

Suggestion: 

Experience suggests that if people are made to participate in the process of collection of taxes and if they know how these taxes will be used for their benefit then collection of taxes will become much easier. 

As far as is possible the services of the gram sabhhas should be taken for collection of various types of taxes. Gram Sabha is primary unit of the conglomeration of people for whom the taxes 
would be used for collective benefit. There can be no agency, government or otherwise, better than the gram Sabha itself to carry out this task. Our suggestions are as follows.

State governments should make list of various type of taxes. 

  • a. List of those taxes that are imposed and collected by the state government. 
  • Those taxes that would be imposed by the state government but the collection would be on the direction of gram panchayat. 
  • Those taxes that would be imposed by the higher levels of panchayats but would be collected by lower levels of panchayats. 
  • Those taxes that are imposed and collected by the same level of panchayats. An effort should be made that most of the taxes should fall in this category so that each level of panchayat could become financially independent. 
  • Income generated out of the wealth of gram Sabha should be credited in the account of that gram sabhas only. Part of the duties imposed by the Agriculture Produce arketing Committee (APMC) at the market place should also be credited to the concerned panchayats. We would mention here that both buyer and seller have to pay taxes to the APMC. Where and how this tax is spent is not known to any body? 


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