Tax collecting - Bangalore style
Updated: Jun 12, 2013 03:49:16pm
Bangalore, Jun 12 (KNN) The silicon valley of India has adopted a novel way of ensuring that companies pay their taxes. It sends a band of drummers to shame defaulters, according to a BBC report.
Sporting bright bandanas and matching shirts, the rhythmic beating which is the southern city’s style of collecting taxes has thus far had an appreciative audience.
Having had a problem with units not paying up their dues, the tax department had sent out numerous reminders. When that failed, the city has had to resort to this technique of using music six months ago. The message to defaulters is clear – pay up or everyone in your neighbourhood will know.
Significantly, ever since the method has been used about 50 per cent of the firms have paid their taxes according to the Bangalore Municipal Corporation.
As for the musicians, it has been a steady income. They are sent on a lorry to an address of a defaulter, the sides of the vehicle displaying the name of the company that has evaded tax.
A similar drive to recover taxes was launched by the Delhi City Corporation earlier. In Patna, some years ago, a troupe of eunuchs was deployed to sing at shops which had not paid their taxes.
The BBC report also states that India has one of the lowest rates of tax payment in the world. Only three per cent of India’s 1.2 billion people pay taxes.
This could be attributed to a third of Indians who are so poor that they are exempt. Further, much of the agricultural sector is paid through cash, which makes incomes very hard to track. Also, India's tax-collection system is poor, and the rules are complex and contradictory while many of the rich and middle class evade paying taxes.
However, in the recent years, India has made it easier for people to pay their taxes online.
Also, to solve its tax problem, the government has adopted two approaches.
In this year’s budget, the 'super-rich' tax was levied as a 10 per cent surcharge on those with incomes exceeding Rs one crore and the finance minister said there were 42,800 tax payers in that bracket.
Further, the income tax department has sent letters to 105,000 people asking them to file their returns. The Finance Minister refers to them as gentle or polite reminders. (KNN)
Sporting bright bandanas and matching shirts, the rhythmic beating which is the southern city’s style of collecting taxes has thus far had an appreciative audience.
Having had a problem with units not paying up their dues, the tax department had sent out numerous reminders. When that failed, the city has had to resort to this technique of using music six months ago. The message to defaulters is clear – pay up or everyone in your neighbourhood will know.
Significantly, ever since the method has been used about 50 per cent of the firms have paid their taxes according to the Bangalore Municipal Corporation.
As for the musicians, it has been a steady income. They are sent on a lorry to an address of a defaulter, the sides of the vehicle displaying the name of the company that has evaded tax.
A similar drive to recover taxes was launched by the Delhi City Corporation earlier. In Patna, some years ago, a troupe of eunuchs was deployed to sing at shops which had not paid their taxes.
The BBC report also states that India has one of the lowest rates of tax payment in the world. Only three per cent of India’s 1.2 billion people pay taxes.
This could be attributed to a third of Indians who are so poor that they are exempt. Further, much of the agricultural sector is paid through cash, which makes incomes very hard to track. Also, India's tax-collection system is poor, and the rules are complex and contradictory while many of the rich and middle class evade paying taxes.
However, in the recent years, India has made it easier for people to pay their taxes online.
Also, to solve its tax problem, the government has adopted two approaches.
In this year’s budget, the 'super-rich' tax was levied as a 10 per cent surcharge on those with incomes exceeding Rs one crore and the finance minister said there were 42,800 tax payers in that bracket.
Further, the income tax department has sent letters to 105,000 people asking them to file their returns. The Finance Minister refers to them as gentle or polite reminders. (KNN)
Loading...
