Encouraging Sign
THE voluntary Disclosure of Income Scheme
(VDIS) has generated optimism in the government that a significant number of taxpayers
would avail the offer and the national exchequer would be richer. Paying income tax or for
that matter any form of taxation is taken as an unnecessary burden by most people. This
particular notion must be removed by adopting appropriate strategies namely by making the
tax clearance system more simple. Of course, ignorance of the system can be no excuse to
evade taxes. But unfortunately this is exactly what is happening in our context. The
people who are versed try to evade and those who do not are caught in the net. However,
this time around the VDIS and the publicity accorded to it has raised the amount of
awareness among the people that paying tax is the duty of every citizen with taxable
income. This is what was clearly seen as the deadline for the settlement of income tax
under VDIS was coming to its conclusion. The number of taxpayers declaring their income at
the concerned office, as per news reports, suddenly saw a spurt since Thursday last. This
is quite encouraging. The other fact that may have compelled the taxpayers file their
income status is that the government has all through been reiterating that stern action
would be taken against the defaulters after the deadline expired.
The goal of VDIS is to bring more people
under the tax net so that the development activities could be accelerated with the
financial resources that the government would have at its disposal. The projection of
raking in one billion rupees through the scheme, however, has not materialised. Whatever
has been collected is just the tip of the iceberg. After the deadline, the concerned
office must go in for investigation and bring the evaders to book. Without taking tough
action against those who do not pay income tax at all or who pay only a fraction of the
actual tax, the government’s financial strength will not improve. In fact, everyone
must be treated in the same light. This is the crux of the matter. No favour or immunity
must be granted to anyone who does not declare his actual income and pay tax accordingly.
On this matter, the tone of the government suggests that it will take every measure so
that no taxpayer can escape from the income tax net.
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