• Home
  • Management
  • Startup/Entrepreneur
  • Gamechangers
  • Tech/E-Commerce
  • Career
  • Global Business
  • Women's Business

  • India: Don’t Pay Your Taxes, No Problem

    This is problematic on many fronts, but two especially: first, buy citizens not paying their taxes, the national and city infrastructure can’t be improved, so commerce is dramatically affected, which means, no transportation hubs, no wireless communications, no new enterprise, not within the central cities, which means lack of employment. So you are hit by tax evasion from those who are working, and no revenues, who can’t work, because the country is not being built for twenty-first century commerce.

    Now I know why India might have the worst infrastructure of the super-developed nations: tax evasion is so rampant that it’s almost considered cultural – almost, not illegal.

    This is problematic on many fronts, but two especially: first, buy citizens not paying their taxes, the national and city infrastructure can’t be improved, so commerce is dramatically affected, which means, no transportation hubs, no wireless communications, no new enterprise, not within the central cities, which means lack of employment. So you are hit by tax evasion from those who are working, and no revenues, who can’t work, because the country is not being built for twenty-first century commerce.

    Second, if tax evasion is this rampant among its citizens, then the government has to be corrupt as well. For the government to allow such a thing, they would have to be in on it, and if that’s the case, then businesses will hesitate to come to India, due to not having regulations that are fair and policed. A business could be attracted to India to avoid taxes, but soon after, be extorted, because they don’t pay taxes. Also, they might not find the labor or the infrastructure to conduct world-class business.

    The BusinessWeek article, In India, Tax Evasion Is a National Sport, it states, “India loses 14 trillion rupees ($314 billion) from tax evasion annually, depriving it of funds for investment in roads, ports, and power, says Arun Kumar, author of The Black Economy in India. General government tax revenue is an estimated 18 percent of India’s $1.5 trillion in gross domestic product, the lowest among the four BRIC nations, International Monetary Fund data show. With so little revenue coming in, Prime Minister Manmohan Singh is now attempting India’s biggest overhaul of the tax code in half a century. …Investors say tax reform would boost their confidence. “If the government does end up making a substantial amount in revenue as a result of the tax overhaul, their deficit requirements should come down and the interest burden will also come down,” says Killol Pandya, Mumbai-based head of fixed income investments at Daiwa Asset Management (India).”

    I don’t know how India expects to become a world-class country, when simultaneously seeks to join the global community through commerce and culture, while disrupting that very growth through a compromised tax policy.

    Good Luck.

    Calvin Wilson
    Founder and CEO
    Upstart: Business and Management for 20-40 Year Old Professionals
    calvin.wilson1@verizon.net
    http://twitter.com/Upstart__Nation

    Filed Under: Global Business

    Tags:

    About the Author:

    RSSComments (0)

    Trackback URL

    Leave a Reply

    You must be logged in to post a comment.