Budget 2015 – essential goods and services must be exempted from taxes for poor people and subsidies must be only for poor people.

Tax in General + Budget + Finance Acts – By: – CA DEV KUMAR KOTHARI – 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 many items in lesser quantity and of lower price. However some items of consumption and services are priced similarly for poor an

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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

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e ₹ 1,000 per pair The exemption must be restricted up to MRP of ₹ 1500/- or 2000/- per pair. Above that, must bear more taxes as they are more for brands and fashion and not as essential item. Locally made mobile phones, LED/LCD panels, 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 o

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panded with a view to increasing the number of beneficiaries from the present 1 crore to 10.3 crore. Similarly, ₹ 6,335 crore have so far been transferred directly, as LPG subsidy to 11.5 crore LPG consumers. I am sure, persons who are better-off, such as those in the top tax bracket, and those genuinely concerned for the welfare of the poor, such as members of this House, will give up their LPG subsidy voluntarily. In my two articles webhosted on this website I had already mentioned for such voluntary disclaimer of subsidy on LPG cylinders. As soon as I became 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 enc

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