Govt mulling on Cess on Income tax to combat crude price Hike
From what I hear and read, Government of India is mulling of imposing a cess on the income tax to combat rising crude oil price !!!
Not fair not fair !!!!
Whenever the govt needs to correct its wrong doing the first thing it does is to tax the Middle Class.
Govt does not want to reduce customs and excise duty on fuel. It does not want to increase the fuel price supposedly because it hurts the normal man BUT surprise surprise they will impose a cess on income tax to offset the loss !!!!!
what an idea sirji !!!
By imposing a cess on the income tax you are penalizing the salaried people and high income people. If you earn more you pay more tax so if your tax outgo is more your cess will also increase. So rich people and middle class pay for the rise in crude prices !!! how fair is that !!!
On the other hand if they had increased the fuel price, everyone in India had to pay the increased cost of fuel thereby there would have been an unrest among the people and the people in the lower income group would have come on the streets against the price hike. So govt finds a safest option... put a cess on the middle class and the high income people. IRRESPECTIVE of how much petrol one consumes, if their salary is high they pay more cess !!!!! what a logic !!!!'
After 5-6 years when we look back at our handling of the inflation and our reaction to global crude price rise we will cringe and Shudder at our lack of political will to rise the price of petrol. We will demean the political system for failing to rise the oil price and to pass on the burden to the right people. But alas whats the use of dissecting a lost battle. We never learn right !!!
Amazing MR. FM amazing !!!
[Addendum] : When I read the below article, I gave a sigh of relief..
http://in.rediff.com/money/2008/may/28oil1.htm
cess might not be introduced after all. I hope there is status quo on Cess. Else It will be a very bad proposal and a wrong precedent.
Not fair not fair !!!!
Whenever the govt needs to correct its wrong doing the first thing it does is to tax the Middle Class.
Govt does not want to reduce customs and excise duty on fuel. It does not want to increase the fuel price supposedly because it hurts the normal man BUT surprise surprise they will impose a cess on income tax to offset the loss !!!!!
what an idea sirji !!!
By imposing a cess on the income tax you are penalizing the salaried people and high income people. If you earn more you pay more tax so if your tax outgo is more your cess will also increase. So rich people and middle class pay for the rise in crude prices !!! how fair is that !!!
On the other hand if they had increased the fuel price, everyone in India had to pay the increased cost of fuel thereby there would have been an unrest among the people and the people in the lower income group would have come on the streets against the price hike. So govt finds a safest option... put a cess on the middle class and the high income people. IRRESPECTIVE of how much petrol one consumes, if their salary is high they pay more cess !!!!! what a logic !!!!'
After 5-6 years when we look back at our handling of the inflation and our reaction to global crude price rise we will cringe and Shudder at our lack of political will to rise the price of petrol. We will demean the political system for failing to rise the oil price and to pass on the burden to the right people. But alas whats the use of dissecting a lost battle. We never learn right !!!
Amazing MR. FM amazing !!!
[Addendum] : When I read the below article, I gave a sigh of relief..
http://in.rediff.com/money/2008/may/28oil1.htm
cess might not be introduced after all. I hope there is status quo on Cess. Else It will be a very bad proposal and a wrong precedent.
posted by amitkeerti | 3:45 AM
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