Respecte
P CHIDAMBARAM
Subject:
Only Service Tax and no Personal Tax
Dear Mr. Chidambaram,
I think you should take the bold step of removing personal taxes altogether and bring about a lot more services under Service Tax. This way a person who spends more will pay more tax and obviously it would be the people who have more money that will spend more. Have a structured Service Tax by levying higher tax services that are used by the rich. For example service tax at hotels should be depending on their star status. So a 5-star can have a tax of 30% and a 1-star could have a tax of 10%. Similar ratings should be given to restaurants also. Similarly have a higher tax for Business class Air Fare, First Class AC etc. Apply the same logic to everything from hotels to schools.
Yours Sincerely,
Biju Parappilly
India
2007-03-01
Budget 2006