One Corporation One Tax
Every corporation needs money. And tax is the way they collect it to give services to the citizens it serves.
What is the easiest and the best way to collect money from citizens?
There had been numerous research activities conducted by top economic scientists of the world on this topic. Though, they look at costing every government service and the citizen pays per use, it has been found there are services that just cannot be costed. Most researchers recommend a combination of both; that is, for most personalised services, the citizen pays on per-use basis and for non personalised services, the public body taxes the citizen.
It is also suggested across the world and adopted by various governments that taxing done for non-personalised services are merged and collected using a single taxation system.
What makes a single tax system attractive?
For the governing body, they have but one tax to collect. Therefore, ensure that taxes are collected from every liable citizen. Limit manpower on revenue. Ensure proper implementation and an ambiguity free law binding on the citizens. Cost of tax collection will come down. Reduce corruption in governance. Knowing a clear collection budget will help them plan their expenses well. Announce what expense is connected with the tax being paid.
For the citizen, she has but one tax to pay. Number of times she has to plan for a payment would be lesser. A corruption free tax collection system is a possibility if it is ambiguity free. Limited tax and knowing how the tax money is being spent and what for she is paying, makes sure that compliance is universal and willing.
Take a look at the taxes every municipal corporation in the state collects from its clients.
1. Property Tax. This is based on the size of the property, type of construction and the location. Lots of lee-way for corruption and wrong tax marking. Collection itself is done on a half yearly basis. Self assessment is now accepted.
2. Water Tax: Based on the supplied quantity of meter but the meter itself is not proven. An RTI filed with TWAD and corporation reveals that there is more quantity billed than purchased from TWAD! Lots of corruption happens in meter reading and with meters themselves. Collection is again forced with threats.
3. Professional Tax: Anyone earning more than 21,000/- per half year is bound to pay professional tax. Please tell me who is not? A house maid makes 8,000 a month which means she also has to make a professional tax payment.
4. Vacant Land Tax: Applicable based on size of land. This is not collected half yearly but whenever you go for some job with the corporation they collect all the outstanding!
There are of course, other income sources which we need not consider here because they are specific to-the-service payments.
Can these taxes be merged and made into one single tax?
Yes, certainly. This would give all the advantages that have been listed earlier for both the corporation as well as for the citizens.
We are requesting the Corporation of Coimbatore to bring in One Tax subsuming all the four taxes!
Support this cause. Give your comments below.