Mr. X likes to see movies so much that he watches one movie every week. Then calamity strikes, the friendly neighbourhood cinema shuts and lo behold, becomes a multiplex! Since its a little heavy on his pocket, X now watches one movie every 2 weeks and balances his budget.
Like most people living in the city of Mumbai, X commutes 25 kms to work and back. His Petrol bill was 12k a month before he switched to a fuel efficient diesel car. He now spends 8k a month. After the recent fuel price hike, X is planning to commute by train or AC bus, but only on Saturdays. That way, his commute will also be comfortable and he will be balancing his budget as well. Small sacrifices, but they have to be made.
So why is X happy that the fuel prices have risen and he has to cut back on his lifestyle to save money? Well, Like most us reading this, X is also a tax payer and a good citizen. He, along with you and I, is part of the 35 million Indians who pay Income Taxes. In a population of 1 billion, that translates to just 3.5% of the population!
So why is the recent fuel hike actually good for X and the other 35 mn Indian Tax payers?
Rich farmers in Punjab riding them shiny Mercedes cars do not pay a penny in Income Tax ! But X, you and I, we are sharing the burden for supplying him cheap Petrol and diesel for his ride!
The Government sells fuel at a price lower than its cost. The difference is ultimately added to the country's fiscal deficit and to balance the books, the Government has to raise more money, through, amongst other things..... TAXES. Taxes, one part of which is paid only by X, Me and You, but not by the Merc-walla farmer in Punjab!
And also X asks, why should he pay for the farmers profligate use of fuel or indeed why should a tax payer commuting by bus and train pay for X's ride to office in air-conditioned comfort.
And that is why X decided not to support the Bharat Bandh of July 5, 2010.
(picture copyright with duncun http://www.flickr.com/photos/duncan/)
