Friday, 21 January 2011

MCD apparently believes - Don't penalise evaders, Reward loot

In today's newspaper, the advertisement by the Municipal Corporation of Delhi has highlighted waiver of interest and no penalty payable by defaulters in respect of property tax not paid by them in the past.
But why are the defaulters being given this benefit? Who has given MCD the right to reward those who have not paid their dues? The scheme is applicable from 2004. A quick estimate is that money in bank Fixed Deposits doubles in 6-7 years, as such against say Rs 1000 paid in 2004, the house owner would now have to pay only approx Rs 500 as property tax. And if all subsequent years are added, the gain is huge indeed.Why is this benefit being extended to only those who are irresponsible, who have been freely availing the benefits of say street lighting, drainage, horticulture, sweeping of roads and pavements etc. etc., i.e. why give benefits only to the freeloaders?
What reward is MCD giving to those house owners who have regularly and sincerely being paying their property tax? Are they being exempt from future tax?  MCD officials would surely be shocked out of their wits by such an idea and could come up with a hundred and one reasons why the honest should be penalised to allow the freeloaders to make merry.

MCD's advertisement has been wrongly worded. It should have read something like this:

ATTENTION PROPERTY OWNERS.
Don't pay your property tax when it is due, and definitely not when it is overdue. Wait. Relax. You have nothing to lose and a lot to gain. A very long time later, might even be several years later we will come back with a scheme to your advantage. Till then, eat the fruits of those foolish enough to pay tax within what we call "the due date". Others have sown, you should reap. For now,
DON'T PAY
DON'T PAY
DON'T PAY.

The Economic Times on their website editorial today headed “Tax amnesty: Penalise evaders, Don't reward loot” states:
The government is reportedly formulating an amnesty scheme to allow repatriation of black money stashed overseas. This is a bad idea and should be dropped. All the more reason, after the Supreme Court’s observation that “the government was wrong in treating black money as a tax issue when it was simple and pure plunder of the Indian economy” .  Amnesty schemes are morally corrosive as they offer relief to evaders, but penalise honest tax payers. http://economictimes.indiatimes.com/opinion/editorial/tax-amnesty-penalise-evaders-dont-reward-loot/articleshow/7323901.cms

I hope the newspapers will take cognisance of this advertisement - MCD hase already gone ahead with that which the Government is still reportedly formulating.

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