Budget 2022-23: What does the Common man want #1

In a democracy, the common men/women (read honest taxpayers) are the source from which the government gets most of the money to run the country. They have a lot of expectations from the budget but invariably no one approaches them or asks them what they want. Paradoxically the so-called common men/women are not seen or heard in the corridors of power. This is the gap that Taazakhabar News tried to fill up by providing a platform for the common men/women to express their views and concerns. Here is what they expect to see in Finance Minister Nirmala Sitharaman’s Union Budget for FY 2022-23:

A Common man (who does not wish to be identified), Chennai

Taxes impede economic growth. When tax rates are increased paradoxically there is a decline in the total revenue collected by the government. Conversely, when taxes are cut, total tax revenue has a strong tendency to rise. The economics of incentives tells us that when tax rates are increased two things happen. Firstly, people have a greater incentive to evade taxes because the increased benefit from evasion justifies the cost of being caught. Secondly, the incentive to work is diminished.

Only about 2 per cent of the Indian population pay any income tax. With the huge black money economy in India, these gains would no doubt be magnified. Lakhs of crores of stagnating capital will be released and put to productive use. Under GST, by contrast, only the money you spend is taxed. The money you save and invest is never taxed. And that makes economic sense because nothing that impedes investment should ever be taxed. How is the taxing of investments ever going to increase investment?

Shevata Rai Talwar Social worker and Human Rights activist. Dehradun  

I wish that this budget proves to be gender friendly and taxpayers friendly. Women issues and needs should be addressed on a note of positive discrimination. Women’s health, education, and wealth creation are very important for a nation to flourish. Happy women make happy families, so we should create a happiness quotient or index like Bhutan our neighbouring country.

The income tax brackets burden the taxpayers without many incentives in return. The aggrieved taxpayer should be coaxed to honestly pay taxes by offering sops and incentives which helps in moving and building India into a developed nation. Another untapped wealth of India is our youth (India being the youngest nation in the world with a majority of its population in the youth category), the budget should try to help them orient in skill development while increasing taxes on tobacco, and other intoxicants.

Ashutosh Kumar, Mumbai

Reduction In Direct Tax Rates:

• For salaried: Exemption from  tax from Rs.2.50 lacs to Rs.5.00 lacs
• Standard deduction from Rs.50000 to Rs.100000
• Section 80C  provides a host of tax deductions includes  tax saver FD, ELSS investments, home loan’s principal repayment, LIC. Etc from Rs.1.50 lacs to Rs.2.00 lacs. WFH  allowance of Rs.5000 to be included
• No  need for submission of 15G and 15H whose total interest on  deposit falls within no tax file category as  all transaction on a PAN number can be monitored by IT Dept electronically.
• Demand of  a separate tax deduction under Section 80D for covid related medical expenses, besides existing  permitted limit  under Section 80D and existing limit to be doubled

Shivani Tiwari, Associate Content Manager, Collegedunia

Every common person dreams of lesser taxes, higher savings, as well as improvement in healthcare, and employment in the budget. The commoner seeks a reduction in GST and a fall in prices of petrol, diesel, LPG cylinders. The government should reduce VAT on various household products. Will the government consider the highest income tax slab rate from 30% to 25%? However, an enhancement of deduction from 150,000 to 300,000 would be a reasonable exemption limit under 80C deduction, but this is what a commoner can only dream of, and such things in a budget cannot be done. In the times of the COVID-19 pandemic, everyone in the country has suffered directly or indirectly and incurred a sizable amount of expenses on treatment. The government should introduce covid expenses as an expenditure. No doubt, the government has shown tremendous support to people, but what about the ground-level support of the healthcare infrastructure. There is a significant increase in people’s awareness and now many are taking health insurance. The government should focus on doubling the limit from INR 25,000 to INR 50,000.

Dr. Shiva Kumar Uppala, Oncologist, Banglore

Even after 75 years of independence, more than 70% of people reach out to state capitals or major cities for health care requirements. Accessible and affordable health care is what the common man is looking for. At present, the GDP allocation for health care is very less. Rural health care infrastructure needs to be improved. There is a wide gap in tertiary health care from the capital to 2 tier cities. Increasing tertiary health care in 2-3 tier cities is of utmost importance.

Another important thing is the cost to set up private hospitals is very high due to GST on healthcare equipment which hospitals cannot claim since services provided are exempted from GST. Giving healthcare-related equipment at minimal GST will boost infrastructure and technology adaptation in the health sector. This should help in giving more tertiary care facilities in tier 2-3 cities

M L Verma, former Chief of Personnel Alliance Air (subsidiary of Air India) and Member Mediation Committee, RERA

Everyone expects all sorts of concessions but the question is how in return will they contribute to nation-building and strengthening the hands of the government. No one teaches responsibilities of the common man but rights alone. Why? During the last 75 years please name a Govt. in the entire world that could fulfil the expectations of the common man? We must change our mindset. One item agenda is to remove corruption from public life and fix accountability of Beaurocrats and politicians everything will be okay.

G K Bhatnagar, Chairman Sudha Society Foundation, Raipur

• Complete income tax exemption for senior citizens/ pensioners as interest rate in saving has come down drastically
• Inflation should be curbed
• Limit under HL loan exemption should be enhanced to Rs.2 lakhs
• GST should be waived on Insurance policies as insurance is a must for all especially for small and middle-class people
• Those availing Agriculture loans from bank Crop insurance should be made compulsory and premiums for small and marginal farmers should be. Born by the govt.
• Big farmers should be brought under the Income-tax bracket
• Working women should be given an extra standard deduction of Rs 30000/PA.
• Small industries should be encouraged and should be given incentives like low bank interest rates, a low slab in Electricity payment
• Each Govt. school should be encouraged to establish a library in their school so that students should read literature/ newspaper / Science books / Spiritual books and reading habits should be encouraged amongst them.
• For health fitness – Each school should appoint yoga teacher in school and salary of. Yoga teacher should be born by the Govt.
• To bring more people under income tax bracket 2-3 honest income tax payees of each district should be honoured every year by the income tax Deptt.
• Each district should have 7 non official (non polltical) representatives of CM to hear grievances of people.

Heena Khanna, 40, founder , Virtue Media, Pune

Common man expects a more supportive budget this year. Since the beginning of the pandemic- middle-class people have been facing a lot of problems. From businesses getting severely impacted to salary cuts to a rise in inflation everything has taken a toll on the financial situation for a common man. We expect petrol and diesel rates to come down which has directly or indirectly affected many other industries. More relaxation’s on taxes for women is expected.

Pooja Bhardwaj, Banker

All we want from the latest budget is – more emphasis on preventing inflation… because almost all small/big businesses have got affected due to covid, businessmen are increasing the prices and a common man has to bear it.

We are the taxpayers and we do not want any Community to be given special status at the expense of tax collection. It is over buffering the taxpayers.

Rishi Arya, 33, Vadodara

Every time the focus is on either farmer, lower middle class or projection is towards FIIs.

Middle-class people who pay taxes in advance, don’t get any significant boost. If something can be kept in mind for this ‘on-time tax paying’ class, it would motivate them as well, for a change. Removing LTCG or STT would be one relief, if possible so that people could invest more n more in the Indian economy and support it to re-boot and reform to new heights.

Ekjote Singh Sehgal – A common man with a dream to see India as a Super Power in next 25 yrs

• Special benefits to Income tax payers as compared to non-payers to motivate people to declare their actual income and pay taxes
• Improvement in Govt hospitals and Health infrastructure
• Better infrastructure in Govt schools Education system with upto date facilities.
• More production of defence equipments with more privatisation of Defence manufacturing sector
• New initiatives to decrease un-employment.
• Reduction in Private schools Fees with possible Govt Aid to really needed .
• Better Road infrastructure to villages, Hills , remote & Border areas.
• Increase income of farmers by declaring MSP for all crops