The new direct tax code is just another useless shit
The actual amendment that was proposed was to start the tax inclusion at 5 lacks but the cabinet has approved the exemption limit to just 2 lacks from the current 1.6 lacks, now who wants this chillar. Its just fucking useless whereas the exemption upto 5 lacks would have been revolutionary. Now this madarchods worry about tax bracket as if they are paying by pimping their father’s gand.
Since 60s it has been evident that whenever tax rates and tax bracket were at the lower side, the tax collection has always increased, it works because when people have more money with them they spend more and increasing the GDP and eventually the tax collection. This trend of Laffer curve has been all evident till now and would have continued to provide more economical benefits to every one if the bracket would have been increased to 5 lacks, instead they just increased the bracket by 40k thats just the chillar and it will eaten up by the inflation and everything will be back at square one.
To put things into perspective prices of most of the products of daily consumption has increased, almost it has increased to more than 50% from the time when 1.6 lack bracket was introduced. So nobody is actually saving anything actually the value of 2 lack is less than 1.6 lack now, so nobody makes any benefit.
Why doesnt the government consider inflation when talking about taxes. When the prices of products are increasing we should be paying lesser tax because we are not left with much money, we are paying more. But the governemnt is unmindful of this the governemnt still charges the same tax. Suppose we have 100 rupee out of which we are paying 10 rupee as tax, now with inflation the value of the remaining 90 rupees we have is just 60 rupee because we are paying 5 rupee for a product that had costed 3 rupee when the inflation was low. But still madarchods want 10 rupee. Moreover when there is inflation the government gets more money because the prices of goods have increased so the governemnts percentage in tax also increases.
I dont pay taxes neither i am i going to pay, but still its pure exploitation of those who are paying.
P.S. some of the figures are just examples and doesnt have any statistical validity