Hyderabad: Abolition of the existing taxation system and introduction of Banking Transaction Tax is one of the biggest economic policy decisions that Surana family, which has a 150-year-old legacy that stretches to various businesses, is expecting from the government.
Á ‘well-to-do’ family with an average annual income of Rs 10 lakh to Rs 15 lakh is finding it difficult to deal with the rising inflation rate that is resulting in price hike while making education and fuel unaffordable, said financial analyst Jithender Surana, 49, who is managing a joint family in the city along with his wife, Ms Shailaja Surana, who is vice-principal in a private school. Mr Surana has recently admitted his son into a business management course, which is costing more than Rs 1 lakh per semester. “Education is important for everyone as it moulds one’s future. Given this crucial aspect, there should be more budgetary allocations for education. Besides there should be strict rules to regulate private sector and they should put an end to collection of exorbitant fee.” In the 2018-19 Budget, only 3.4 per cent was allocated for education, which was 3.74 per cent in the Budget before that. “Despite dealing with everyday financial hurdles, what is steadily increasing is the price of fuel. We spend around Rs 15, 000 on fuel alone for a two-wheeler and a four-wheeler that we have,” added Mr Surana.
He thinks that some of the points from ‘Arthakranti proposal’ of economy to be implemented in the country.
On the taxes that ought to be scrapped, it is believed that it should result in increasing the purchasing power of the family as they would bring in more salary to home. This will also mean all commodities including petrol, diesel, FMCG would become cheaper by 35 to 52 per cent and there won't be any question of tax evasion. With no scope for black money, it will boost business sector as well.
And instead of existing taxes, the Arthakranti proposal insists on Banking Transaction Tax of 0.7 to 2 two per cent. According to the proposal, it would generate more revenue than the existing taxation system.
And it requires no separate machinery like income tax department and tax amount would be directly deposited in State or Central or District administration account immediately. As transaction taxes would be less, the public will prefer it to paying huge direct and indirect taxes....