Published 14:37 IST, June 9th 2020
Tax should be based on consumption instead of earning, says Milind Soman; netizens debate
Milind Soman suggested that tax should be based on consumption instead of earning. Netizens debated, some supporting it and many pointing out its loopholes.
Advertisement
Taxation is one of the crucial components of not just an individual’s income, but also the revenue that the government generates. During every year’s budget by the government, one of the most anticipated announcements that is looked forward is on taxation, which includes how much tax every income slab is required to pay. Citizens are often not too pleased with the percentage, sometimes a significant one, being deducted from the earnings.
Milind Soman recently took to Twitter to put forth a suggestion regarding taxation. The actor wrote that a person should be taxed on the basis of one’s consumption and not the earnings.
Here's the tweet
Tax should be based on consumption, rather than earning.
— Milind Usha Soman (@milindrunning) June 9, 2020
Netizens put forth their views in the comments section and it was divided. Some of them felt it was a good idea.
Exactly .. it should be on spending capacity .. not on earning capacity ..
— तितली 🦋 (@neetapatnam) June 9, 2020
Completely agree.
— Samar S. Sheikhawat (@SSSheikhawat) June 9, 2020
Cannot agree more
— Vivek Srivatsa (@Vivekvivi) June 9, 2020
However, majority of them did not give a thumbs up to the idea. Most pointed out that a tax on the basis of consumption was already in place, referring to the Goods and Services Tax (GST) or Indirect Tax.
GST is the Tax what we pay on Consumption.
— Rishi Bagree 🇮🇳 (@rishibagree) June 9, 2020
Income Tax is what we pay on the Earnings.
Contribution of Both Direct and indirect taxes are equal in the Govt Revenue
Its already in place dear Mr Soman, every product you buy there is MRP plus taxes extra, .....that is the tax based on consumption also called indirect tax , thank me later😉🙂
— ayesha (@ayeshaaref) June 9, 2020
Some also felt that an idea like this could be tougher on the economically weaker section of the society, as they might spend a bigger percentage from their earnings, as compared to the rich, or how both the poor and rich would pay the same tax on a particular product.
Tax on consumption exists,it's #IndirectTax.Unfortunately Indirect tax is the same for every consumer,rich or poor.A poor man has to pay the same local taxes/GST on a packet of biscuits/soap as rich man.#DirectTaxes on earning are progressive. Rich have to pay higher #IncomeTax
— nirupama kotru (@nirupamakotru) June 9, 2020
Sounds good but it is practically impractical. Poor will be overloaded and rich will feel marginally light.
— Anurag VK (@philocalist4) June 9, 2020
Do you think other way ?
Also, with income tax absent, the rich folks are left with more amount of money but negatively affects the demand supply equilibrium and again resulting in inflation.
— Shashank Kulkarni (@SleepTard) June 9, 2020
Will stimulate the economy and take money out of inefficient hands of the government but will be bad for poor.
Consumption based taxation will add more tax burden to the low income earning groups and thats not encouraged for an economy where disparity in earnings among citizens are at extreme ends.
— Saurabh Budhia (@saurabhbudhia) June 9, 2020
Yes Sir...
— CA BHARAT BHANDARI🇮🇳 (@bharatcbhandari) June 9, 2020
Present GST is all about Tax on Consumption..that taxed at place of delivery/consumed.
But if we tax only at consumption it will majorly affect small & poors.
Taxpayers on earnings are few in the country.
But concept is good but subject to full proof system in place.
If income is 100, consumption is 10, taxes will be only on 10. Balance 90 will remain untaxed. This will only benefit rich and high earning individual with savings. The middle class and lower middle class typically end up spending all their income.
— PK_Lall (@lall_pk) June 9, 2020
A few were also of the opinion that such a proposal will lead to people avoiding expenditure, something that could hamper the economy.
Then people will earn and not spend , which is worst for economy
— thefamilyguy (@thefamilyguy13) June 9, 2020
Economy will slow down if people reduce consumption.
— 🦀 (@granny_1857) June 9, 2020
That'd force people to consume less which in turn would cause downfall of Economy, as already Consumption in India is dead low...
— RewCie 🇮🇳 (@abhas_rewcie) June 9, 2020
Meanwhile, Milind Soman had made headlines recently on Twitter when he announced that he is uninstalling TikTok, backing scientist-turned-education reformer Sonam Wangchuk’s call to boycott Chinese products amid the border skirmishes. The former supermodel keeps sharing inspirational posts on Instagram as far as his fitness is concerned. The Bajirao Mastani star’s wife Ankita Konwar too joins in as the couple set ‘goals.’
14:37 IST, June 9th 2020