MBAs should be taxed at higher rate in India
MBAs should be taxed at higher rate in India
With the prevalent tax structure in India, the rich get richer and the poor get poorer.
For:
- A huge of amount of remuneration is earned by the management professional, corporate professionals and business men, hence the government should introduce a tax system where the tax is charged as per the income of the individual
- For example, recently US has also introduced this system where the richer population is supposed to pay higher taxes which will help bring in more money to the government and in this way the poor will not be burdened with the tax system
- Since the Management studies involve a detailed subject on Indian Taxation, the management professionals are well aware about how to save on tax through the tax rebate system
- With this attitude of people, the government is unable to gather money and is forced to get involved into corruption to have more revenue.
Against:
- The government decides the policy for the entire country and to avoid being biased taxes are fixed on the basis of salary and not on the basis of occupation the person is involved in
- Individuals working in a corporate culture are already been levied with professional tax, charging them with higher tax amount would lead to discrimination and angst among the public
- This would also motivate individuals to move out of India and settle down in other countries where this discrimination is not prevalent, causing a loss to India’s income
Conclusion:
- If the rules of policies are different for every individual it would lead to a lot of discrimination amongst the individuals and also angst.
- So the rules of taxation should be applied based on income and not on the basis of profession.
Discussion
- RE: MBAs should be taxed at higher rate in India -Rishika Jalan (04/22/14)
- This is a very debatable topic whether MBAs should be taxed higher in India or not. Keeping in mind the economic condition of our country where the rich are getting richer and poor are getting poorer, it is a wise and just decision to tax MBAs higher. By this the people who are earning high amount of salaries will pay high amount of tax and the burden of taxes will reduce from the shoulders of the poor people. Thus the government will also be able to earn higher revenue which can be used towards the development of the nation and also towards the betterment of the unprivileged sections of the society. But on the other hand in a country like ours where there is already so much of disparity, a difference in tax structure will just worsen the situation. The MBAs will feel the pressure of the higher taxes which they will have to pay in addition to the professional tax which is already levied on them. This act will not be fair to them as they have worked their heart and soul to achieve the degree. Moreover many corrupt officials exist who earn much higher amounts but their position is not highlighted. Thus, to keep the nation united the tax should be charged on the basis of the salary and not on the basis of occupation.
- RE: MBAs should be taxed at higher rate in India -Rajani Sharma (01/15/14)
- For:
• MBA graduates earn a huge sum of money as their salary and this is increasing over the globe. Thus should be taxed at higher rates.
• In a country like India where the maximum number of population is below the poverty line and after considering the fact that 96% of the wealth is contributed by less than 4% of the population, it becomes very clear that MBAs should be taxed at higher rate.
• By making MBAs pay more tax on their high earned salaries, more money will come to the government which in return can be used in the development of the poor section of the population. This will also give relief to the medium and poor section of the population as they will not be burdened with tax system.
Against:
• Taxes should be fixed and paid on the basis of salary and not on the basis of profession.
• Individual working in corporate world are already charged with other taxes, like professional tax, so charging a higher rate on their salaries will not be justice to them.
• Such kind of policy will coax people to migrate to other countries where such discrimination is not prevalent.
• An individual gets into lot of pain to hold a MBA degree which cannot be compared. Thus the salary which the MBAs get is their hard earned money and should not be taxed on higher rates.
• Taxing MBAs salaries higher is not justified. There are thousands of corrupt officials, politicians who get more than what they should but they are not heavily charged for that then why MBAs just because their salaries come to notice?
• There are many disparities in India over small small issues. Thus by implementing this decision another form of inequality should not be made.
