Friday, November 12, 2004

Why Sales tax?

Why do we need sales taxes?

The Middle East countries have almost no taxation. Was watching the BBC Middle East Business report. btw, I love BBC, its programs are fantastic, although their favourite news item is "Middle East peace/war" which gets repeatative and boring. Also, cool music.

Anyways, getting back to the topic, the Middle east countries don't have income tax, sales tax, octroi et al and some even don't have corporate tax. No wonder things from Dubai are cheap. The government sells all the oil and gets the money.

And here we are. Poor fellow has to work damn hard to earn salary, which after paying income tax, decides to buy a car. Don't forget the sales tax + road tax. Oh yeah, also petrol comes with sales tax from the state government, octroi from the city council, and other taxes ranging from education cess to Kargil fund. Don't forget property tax, water tax and a host of taxes(you would know if you have ever gone to pay the tax)

And all this money is used to do what? Our roads remain poor. I still get water every alternate day. The education system remains rotten.

And why sales tax? If a make a sale to a customer, damn it, why should I pa to the government? What has the government done to help me in making my sale?

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