Budget 2015 – essential goods and services must be exempted from taxes for poor people and subsidies must be only for poor people.
By: – DEVKUMAR KOTHARI
Budget – Tax Proposals
Dated:- 4-3-2015
The budget 2015 has given benefit for poor people by way of common pools and not directly. Any person whether poor or rich has to pay taxes similarly for many essential items for consumption or services. This is not justified.
Taxes must be according to capacity to pay:
The well-known cannon of taxation is that tax must be according to capacity to pay. Therefore, there must be some regard and relaxation for essential goods and services.
Some common items becoming costlier or cheaper for common and other people.
Bhojan and essentials for living -commonly known Roti, kapra aur makan:
Essential goods and services are equally important for poor and rich. Therefore, there must be some regard for poor people.
The quantity and quality are important factors. A poor man consumes man
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you will have to pay more for
Smoking and consumption of other tobacco items will be more expensive,
Good for society as a whole – for better health and environment. Less use of tobacco for smoking will reduce carbon emission also. However, considering that tobacco is an essential item for many poor people also,- they must get some concession.
All services becoming costlier
For poor people there must be some exemption on essential services. For example telephone , mobile phone, internet bill up to ₹ 300/- per month can be exempted.
Similar concessions must be be given for other items of essential nature.
Completely built imported commercial vehicles.
Cement
For affordable housing some concession must be given – area wise or for first time small house at least.
Aerated, flavoured drinks and packaged water
Packaged water must be exempted, it is essential. On many railway stations, bus stops we do not find good quality water for drinking.
Aerated, flavoured drinks can b
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anels, LED lights and LED Lamps
The government authorities must also take care to see that quality of such goods improves and one has to be satisfied with made in India product, of “top class quality good”.
Solar Water heater
Pacemakers
Mal practices in medical services to implant pacemakers even when not necessary msut be curbed.
Ambulance
Not only chassis, other parts of ambulance must also be made cheaper.
Ambulance services
It is an essential services – must get full exemption.
Computer tablets
Agarbattis
Agarbattis are made of artificial scents and are not good for health. They pollute environment. So only small size of agarbatti should get exemption.
Smoke of dhoop, dhoop batti is also not good for enviornment. The smoke is smoke it causes carbon , gas and heat emission.
Microwave ovens
Not affecting poor people.
Refrigerator compressors
Not affecting poor people.
Peanut butter, packaged fruits and vegetables
Essentials like vegetables must be fully exempted.
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me aware of disclaimer option for subsidy I requested , my wife CA Uma Kothari and my daughter Dr. Shweta Kothari -Singla, (both are subscribers for LPG cylinder in their names) and both have disclaimed subsidy in their subscribers accounts. In my articles, I have appealed to readers who are professionals and well to do and can forgo subsidy. I spoke to some other professionals and executive, but I found response not very encouraging.
Therefore, it is very difficult to have voluntary disclaimer of subsidy. As suggested by me in my articles the disentitlement must be compulsory for people living in Pucca houses (a standard can be prescribed) and those having income above certain limit.
Let us hope that appeal of honorable FM is considered and our MP's disclaim voluntarily subsidy on LPG cylinders. As per my feeling even servants working in pucca houses must not be entitled for such subsidy because the cooking fuel is provided by the employer.
It is unfortunate that many rich people a
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