Why do Indians hate to pay Taxes?

Why only 1.5% Indians pay income tax?

The word tax has only negative connotation in India. Hence, neither the word ‘tax payer’ nor the word ‘tax’ can be viewed positively. Tax is synonymous for oppression, looting, exploitation, legalized robbery and these descriptions are unending. Prior to independence, the leaders of the Indian National Movement, described taxes as a way of keeping Indians under oppression. It was believed by all that the British Government was looting India. The way the salt tax was criticized and the symbolic breaking of salt law – the Dandi March are fresh in our minds. Fresh not because it only happened 90 years ago but because we read about it in our primary, higher and university education too. A prized question in every competitive examination. Thus, taxes mean exploitation where the poor become poorer and the Government becomes richer!

If we were to revisit the past 1000 years’ history, we find that the entire Indian history is the history of tax wars. Either annexing kingdoms, wars or imposition of tax by a certain king – be it Muslim or Hindu – the word tax became an unwanted and hated word by all. However much we respect Shivaji, the Marathi warrior king – he is known for his guerrilla war against the then Moghul government opposing ‘Jigiya Tax’. Thus, the Indian history from 1800 A.D – 800 A.D is but the history of tax wars without exception!

Barring a TV advertisement or two issued by the Indian government explaining how taxes are used for nation building activities such as construction of roads, electrification etc., there is no tax education. Of the 135-crore Indian population, taxes are being paid roughly by 5 crore citizens! These people who pay taxes pay as they cannot escape payment. If they were given the freedom, they would gladly join the majority! They would ask why the hell they alone should pay?

A student – of the school or college or university – is taught repeatedly the same old tax history. It is ingrained in our psyche – taxes are bad. Paying taxes, even today, is understood as exploitation! Therefore, as long as we have this negative education about taxes, tax collection is an insurmountable challenge.

Further, the people who pay taxes will never witness the benefits of taxes paid. And the people who benefit are those who never pay any taxes. Don’t you think something is amiss? Moreover, majority of taxes that are collected from liquor and cigarette sales. The taxes collected through these social curses are used for the welfare of the country! So much of nation building!! Something is grossly wrong.

Therefore, as long as we have this mind-set – the word tax will only evoke a negative reaction from the people – never a positive one. Therefore, the dreams of building India etc., will remain a dream. Would it not be better to perform ‘last rites’ to these nation building dreams?


About the Author

Dr. K. Raja Gopal Reddy is a seasoned internationally qualified Insurance professional.

What you are reading here, may not answer all the questions we have, but has the absolute power of asking unsettling questions which increase the interest in the strange world, and show the contradictory wonders lying just below the surface of the commonest things of life. Look at this disturbing but beautiful thought of Friedrich Nietzsche “God is dead. God remains dead. And we have killed him”.

Dr. Reddy can be reached at: raja66gopal@gmail.com

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