Currently, an individual is not satisfied with the amenities provided by GOI in return to the tax what he pays. Also, GOI is not able to generate enough revenue from all those who have taxable income. So I have a pretty simple thought to avoid this situation by adopting new Tax Formula which is not based on an Individual Income but based on facilities that he wants to use while living in the society. It will not only insist Govt to provide good facilities but also insist an individual to pay the right Tax.

It is something like creating categories of amenities & an individual above 18 will compulsorily register for a particular category which will be valid for a year. Each category will have prefixed amount of Tax that an individual has to pay during a period. During the running year he can upgrade or degrade his category.

Now, what are categories of amenities? For e.g. a person wants to own a house of 3 BHK he has to register for such category which provides him this facility. Also, if a person registered for a category which lets him to own mid-segment car but now wants to own a high-segment car then he needs to upgrade his category. As he upgrades the category he has to pay more as tax because he wants more luxury.

Categories should be well defined in terms of available facilities to enjoy & should be created keeping poorest to richest people in mind. This formula should be developed such that all other taxes like sales tax, entertainment tax, wealth tax, road tax, service tax etc. won’t be required & individual has to pay this single tax only for a year. It will simplify the process.

I’m not an economist but if any economists like my idea then they must give it a serious thought.

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