Kindly go through the following link
http://indianexpress.com/article/india/india-news-india/lpg-cap-a-case-for-expanding-the-experiment/
Doesn't say anything new.
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The government last month undertook a key reform announcing income-based subsidy for LPG cylinders. The oil ministry said that the taxpayers with an annual income of over Rs 10 lakh will not get subsidised LPG cylinders starting January 2016. The government estimates this would lead to an annual savings of Rs 300 crore.
The point is where the rest of thousands of crores of rupees is going. The govt decided that people who are already covered under tax radar and have a income of 10 Lac will not get subsidies. That's fine. But what about people who are not covered under tax radar. You can get the subsidy regardless of how much income you have if you are not paying taxes. What about countless number of people under the 10% bracket not paying taxes and availing benefits. Isn't this like a reward to people who don't pay taxes?
What corrective actions is the govt taking in that regard? I also suggested a remedy. Bring all people who avail subsidies under tax radar and scrutinize their income sources and tax liabilities thoroughly to prevent abuse and at the same time get taxes that are usually evaded.
A lot of tax leakage (amounting to lacs of crores of rupees) can be found at this level. If the govt is doing this to save 300 crore per year, how about doing what I suggested to get a few lac crores in tax revenues even at the risk of turning their vote banks against them? Does the govt have the gall to do that? Do you seriously think I even need to tell this to the govt and that they don't know already and just ignore?
Let me assure you that if the govt does this, leave saving 300 crore, they won't even be left giving 300 crore in subsidies. Most people will chose not to get subsidies over paying taxes. Will a taxi driver start paying 2 Lac in taxes just to get gas subsidies worth a couple of thousand?
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