The logic behind FBT is all very fine. The problem begins when FM insists that loss making companies and companies with less than 5-10 emploess also have to pay it. I dont understand the logic there.
Travel expenses are genuine expenses. If there are enterprieses who are "resourceful" enough to pump up such expenses in their balance sheet, I think the way to deal with it should be to penalise those enterprises rather than blanket bomb the entire populace with the FBT. If you are unable to catch the robber, it is hardly justified that you brand the one you caught as the burglar!
An enterprise, a new one at that, thrives on its ability to reach out to more and more clients and thus make its brand known. But if you are going to tax me for travelling, I will certainly think twice. Probably I would still end up travelling and even paying the FBT. But I would be one heck of an unhappy taxpayer. And unhappy taxpayers dont forget easily.
Moreso, when there exists avenues wherein the FM could have taxed and did not do it. But then it is so dashed easy to milk the already lactating cow (damn the fact that it is a skinny one), than hunt for another cow to milk. Too much work!!
In the end, the FM gets a deluge of curses, the govt gets booted out for bad governance (oh yes, that is exactly what it is), the employer is unhappy, the employee is morose. The Tax Dept can sit on another pile. Gandhiji's talisman can go climb the nearest commode and get flushed out.
FBT should be implemented, but only as long as they are "benefits" AND they are "fringe". And if the finance ministry cannot figure out how to define them, go learn English or get out of governing. You are a burden on others.
No comments:
Post a Comment