National Tax Policy

It is a very good suggestion that sales tax should be abolished and in its place an integrated national tax on goods and services should be introduced. As I believe Value Added Tax system introduced in the recent past was a step in the same direction and hope sooner or later National Tax system has to be implemented to avoid double and multiple taxation as also occurrence of avoidance of tax by tax evaders. Problem in our country is not with the system or Law we have in our rule books but it is with the authority which is supposed to monitor and ensure smooth implementation of the Policy and non violation of rules. As a matter of fact it is always the sales tax officers and Income tax officers who teaches the tax payers how to save tax and how to avoid payment of tax provided the tax-payer agrees to his terms and conditions of sharing the benefit taxpayers get by non-payment of tax. It is the Babus of the departments and middlemen between tax authorities and tax payer who decides how much tax has to be paid and how much has to be distributed among tax payer, tax authorities and other Babus and middlemen involved in the conspiracy to defraud the government.To avoid all middlemen and all types of malpractices prevailing in the system and maximize tax collections it is desirable to collect tax from the point where the goods are manufactured in one go and avoid further taxation once for all so that energy of tax authorities is not dissipated but polarized to selected manufacturers only. If case files are fewer there may be possibility of counter checking also by some other authority like CBI.We have seen how by way of TDS government has succeeded in huge revenue collection without incurrence of any established cost on collection. Even if government do away with tax payment by consumer, traders ,wholesalers and concentrate only on manufacturer of goods and services I am very much sure tax collection will increase and increase only and general mass will get rid of corrupt officers. Both parties will feel happy. It is however true those political leaders will cry and shed crocodile tears for their own states. But ultimately government can solve this problem too by judicious methods arrived upon after discussions and debates with scholars