Source: CNA
Singapore shared that in FY2014/15 the Income tax collections grown by 16% and hit SGD 8.9 Billion. This is close to 2.1% of the nations GDP.
On the other hand, India tax collections for FY13/14 it stood at 242856 crores or SGD 53.9 Billion and budgeted for FY14/15 are at 63.1 Billion. From GDP point of ratio this is approx 3.3% of the GDP.
If we see the maximum income without paying any tax in Singapore is SGD 20,000(after deductions), and in India it is INR 250,000 or SGD 6,000.
However if we take the median income of a person in singapore, the effective tax rate is less than 10%. For the same, in India it is higher than 20%. By the way the common man on street in Singapore get "potable tap water, fresh air (except the few weeks of haze contributed by Indonesia) and never go hungry". On top of it there is heavily subsidised healthcare, education and scholarships. I didn't even have to mention the safety & security in the country.
I can easily say (my deduction could be challenged and I am no way posses any insider knowledge) the problem in India is the tax system itself is designed to be backwardish and not for an asian economy. We have to keep it simple and we have to make it easy, and transparent. Unfortunately the people who are honest and paying income tax will end up paying from their noses while those so called business man, big industrialists, and many other unorganized industries end up paying zero tax.
Finally the IRAS (Tax collection body in Singapore) shared another interesting fact.
" It cost 0.8c to collect $1 in tax revenue and they owe this to using technology and simplifying the process".
That's probably the best every anybody could hope for. But knowing Singapore, they would reduce it next year by few percentage points.
Singapore shared that in FY2014/15 the Income tax collections grown by 16% and hit SGD 8.9 Billion. This is close to 2.1% of the nations GDP.
On the other hand, India tax collections for FY13/14 it stood at 242856 crores or SGD 53.9 Billion and budgeted for FY14/15 are at 63.1 Billion. From GDP point of ratio this is approx 3.3% of the GDP.
If we see the maximum income without paying any tax in Singapore is SGD 20,000(after deductions), and in India it is INR 250,000 or SGD 6,000.
However if we take the median income of a person in singapore, the effective tax rate is less than 10%. For the same, in India it is higher than 20%. By the way the common man on street in Singapore get "potable tap water, fresh air (except the few weeks of haze contributed by Indonesia) and never go hungry". On top of it there is heavily subsidised healthcare, education and scholarships. I didn't even have to mention the safety & security in the country.
I can easily say (my deduction could be challenged and I am no way posses any insider knowledge) the problem in India is the tax system itself is designed to be backwardish and not for an asian economy. We have to keep it simple and we have to make it easy, and transparent. Unfortunately the people who are honest and paying income tax will end up paying from their noses while those so called business man, big industrialists, and many other unorganized industries end up paying zero tax.
Finally the IRAS (Tax collection body in Singapore) shared another interesting fact.
" It cost 0.8c to collect $1 in tax revenue and they owe this to using technology and simplifying the process".
That's probably the best every anybody could hope for. But knowing Singapore, they would reduce it next year by few percentage points.
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