Numbers Which Appear Very Scary

According to the Union Budget 2020 documents, Rs.9.4 trillion, (Rs.9.4 lakh crores) worth of direct tax amounts had been demanded by the tax authorities, but not paid by the taxpayers. Of this, demands related to corporate tax amounted to Rs.4.88 trillion while taxes on income and other corporate taxes amounted to Rs.4.5 trillion. Demands relating to indirect taxes on commodities services amounted to Rs.1.69 trillion, taking the total unrealised tax demands towards the end of reporting year 2018-19 to a whopping Rs.11.09 trillion (Rs.11.09 lakh crores).

Many of these demands have been disputed in appellate tribunals, high court and supreme court. Of the total unrealised demands, Rs.9.56 trillion is being litigated in various courts while the undisputed sum is just Rs.1.53 trillion.

The above figures (taken from the Budget documents) clearly indicate the extent to which the government machinery is ineffective in revovering the legitimate revenue due to it. Given this reality, it is not surprising that the government resorts to a very easy way of going on hiking the fuel prices to raise revenue through higher amounts under excise duty, instead of toning up its machinery to revover the tax arrears.

Resultantly the common man has to bear the brunt and pay through his nose, while the tax defaulting sharks are let loose. THIS IS THE REALITY.