Need for incentive, social recognition to high tax payers

PS Deodhar 02 February 2017

Economy & Nation

I have an innovative solution for the Narendra Modi Government to incentivise rich citizens to pay the full applicable income tax. We need to recognise their contribution to the government and honour them. Such visible honour will have many benefits, in addition to adding to their social status.

During the mid-60s, when Morarji Desai was the finance minister, the government used to print the names of those who paid more than Rs1 lakh income tax, in The Times of India! The socialist taxation wisdom of the Congress then was such that large income earners would end up with negative income if they were honest. As an owner of a small and medium enterprise (SME), I was one of those stupid ones whose name got printed in the list. Actually, that year my net income, after paying income tax and wealth tax, was negative!

No one from the Income Tax department asked me how I live!

That list also revealed the level of tax evasion amongst professionals then. I distinctly recollect that only one medical doctor, Dr VN Shirodkar, was in the list, besides two lawyers. Even a halfwit knew that several thousand of doctors, lawyers and other professionals had income far in excess of Rs1 lakh, which itself was big money. (I bought my two-year-old Italian Fiat car for Rs6,000 from a Parsi gentleman in Bandra, as a new one, for, Rs14,500 was beyond me.) However, Morarji Desai did the listing for the wrong reason and it shamed no one. Anyway, what else could one expect from him?

Now, the government in Delhi, for the first time, appears sane and imaginative, besides being honest, thanks to Prime Minister Modi, by seeking to rein in the crooks in his own stable. I am therefore venturing to make a suggestion that I had made to my friend Rajiv Gandhi in 1983. Then, besides giving me his charming smile, nothing more happened.

KUBER AWARDS

Institute Kuber Awards for those financing national development and helping their less fortunate countrymen with their wealth. The top 100 personal income tax payers could be given Kuber Awards.

ANNUAL KUBER PINs (Something that one can show, like an elite club membership):

Tiny golden tie or lapel clips with ‘KUBER 2018’ inscribed on them could be given to all those paying more than Rs50 lakh income tax that year.

These two recognitions will help the rich to enhance their social status as top contributors to our national income. It will also shame the elite around them who don’t pay their proper taxes.

For those paying more than Rs5 crore income tax, one may even consider allowing 20% of it to be used for a social cause close to their heart.

(PS Deodhar is founder and former chairman of the Aplab Group of companies. He is also the former chairman of the Electronics Commission of the Government of India and was an advisor to late Prime Minister Rajiv Gandhi on electronics. He also was the chairman of the Broadcast Council in 1992-93 that set in motion the privatisation of the electronic media with metro channels.)

Comments

User

Mahesh Bhattad

10 years ago

Good idea, however I also think that people should be given a choice as to whether they want to be named in the list or not. Many people might instead prefer to be away from the limelight and want to remain anonymous. Some frugal and wise ones would also argue that being away from the limelight helps them to stay focused on their work and not get distracted. Finally, this needs to be though through in terms of how people will perceive it in the longer term (for ex., if someone appears in the list in one year, but not in the other, how does that reflect upon the individual).

Jyoti Dua

10 years ago

Excellent idea. Hope it is noticed.

Meenal Mamdani

10 years ago

I think that the Kuber holders will be laughed at as dupes by the wealthy. One does not need recognition for doing what is lawful and correct.
Publishing the names of individuals who have been identified as tax cheaters would be a better incentive for others to come clean.