The current strategy that the government is following is to make the new tax regime more attractive so that many people move from the Old Tax Regime to the new one. In the recent budget announcement, the government has mentioned that there will be no tax till 12L. Of course, there are some conditions to that but this is better because there are many people under 12 Lakhs per annum salary and if they cross that limit, it is sufficient for them to pay the taxes.
Regular people are not affected
I see this as good news for the common people because mostly their salaries are low and unnecessarily paying a big tax load to the government was a burden to them. But if someone is earning more than 12 Lakhs per annum, then obviously they are someone who belongs to the upper middle class. This now becomes affordable for those people because they have their basic needs covered and it is not hat harsh to pay taxes.
Anyone who is just getting started with their career might straight away go to the new tax regime. I think every year there is a better announcement coming up for the new tax regime making it more attractive. I also like the fact that it is now very simple if someone is opting for the new tax regime. Gradually after years, it will become very common to opt for the new tax regime, and the old tax regime scheme might become less attractive and vanish away.
Hard to cheat on taxes
With the old tax regime, there are so many options available where individuals can submit fake bills or proofs to get a tax rebate. In addition to that people also make many investments and show that as proof. With the new tax regime, there is good control over fake bills because people don't even have to submit anything because they don't get any exceptions for any of those things.
With digitalization, everything related to salary and earnings will be fully visible to the government so imposing and collecting taxes will be simple and easy. Some people still choose the Old tax regime if they have many bills available to submit and also if they have multiple options that they can use.
Hopefully no taxes in the future
I think the world might move more towards no taxes in the future. It is not because the government would stop collecting taxes but it would be because people wont be paying taxes. In some countries, there are no taxes and in some countries it is legal to use cryptocurrencies and thus they don't pay taxes to the government anymore. But most of the governments operate with the help of taxes from the people. They have to find alternatives to operate the government instead of collecting taxes. In countries like India, corrupt officials take away tax money for their own purposes. Not everyone has a clean hand and it is after all hard hard-earned money for the taxpayers.
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No Tax is possible only in countries with a strong and sustainable economy. India is still trying to navigate through all this and I think we are a long way from a no-tax country. And if India ever achieves that status that would be an awesome day to live and witness India celebrating. ☮️❤️
Adopting transparent and flexible tax policies may contribute to increasing revenues and achieving better tax justice.
For me, the most important point is adopting an easy payment method that may increase citizens’ satisfaction and motivate them to comply.
It’s crucial to explore innovative solutions that ensure transparency and accountability in government spending, especially in places where corruption undermines taxpayer trust
Digitalization is future, here every sale from shops gets transmitted to the state, every single one, so it's impossible to avoid taxes if you make a bill
I hate it when i pay tax though. But its just part of the responsibility now. Its just a matter of time the old one will phase if its not bringing much to the table for them
Low income people are not covered by this tax and there are very few people who earn 12 Lakh per year, They are subject to this tax.. Very good
Paying taxes can be good but high taxes are not favorable. Here in my country, taxes affects the young ones who are just starting their career too. The system here isn’t really good