In this post-Anna, post-Baba Ramdev phase, it seems there is no limit to the brazenness of our netas and babus when it comes to corruption. But then, salt cannot be made more salty.
There is an advertisement, often shown on TV, in which a young boy exhorts his father to be honest and pay taxes, since the money will help the government build infrastructure, etc. Unfortunately, there is no ad showing the daughter of a government official or politician encouraging him to avoid taking bribes.
However, this bribe-related taxation is not discussed in open forums by businesspersons since they are worried about the next round of bribe-giving that may fall due. On the contrary, they even take out full-page advertisements to defend the stealing of public money – whether it is the allocation of coal blocks or airport land.
It is smaller businessmen who bear the brunt of this corrupt state. The smaller the business, the larger the share of bribe one has to pay the minions of the powers-that-be. For instance, a retail vegetable vendor earning Rs 400-500 a day may end up paying Rs 40-50 as bribe to the police and other agencies. This comes to nearly 10 percent of his gross income, and a phenomenal proportion of net revenue.
Government employees collect taxes on two accounts – the client account, which is intended for the government’s coffers, and the “personal account”, for their own pockets. Often, the “personal account” collections significantly exceed what is collected on the government account.
Innovative mechanisms are thought of by government officials to do this, as in the case of a registrar’s office in Tamil Nadu where regular “bribe collectors” are employed by officials. This way, even if they are caught, the actual bribe collectors can always deny any wrongdoing.
Collections on the “client account” can be done only by employees in tax-related (like direct and indirect taxes) departments. But “personal account” collections can happen in almost any human endeavour involving the state – and it can be collected through inaction, speed, inducement, lure, threat or intimidation by any government employee or his agent. It is to be noted that without political patronage “personal account” taxes – bribes, in simple terms – cannot exist.
Recently, there was a report suggesting that in government hospitals in Bangalore, a newborn child is shown to the mother only on payment to hospital employees engaged to provide this “service” to patients. The “fee” is Rs 300 for a boy baby and Rs 200 for a girl, which reveals an obnoxious gender bias, even in corruption.
Government employees collect bribe taxes from citizens on many counts, some of which are presented in the accompanying table. It is clear that the bribe tax collection is a birth-to-death levy and, more important, is no longer considered improper.
There is an advertisement, often shown on TV, in which a young boy exhorts his father to be honest and pay taxes, since the money will help the government build infrastructure, etc. Unfortunately, there is no ad showing the daughter of a government official or politician encouraging him to avoid taking bribes.
Everyday corruption is breaking the backs of the aam aadmi, including the much-reviled middle class. The index of middle-class misery can be measured by adding up the official tax rate, the inflation rate and the corruption rate.
In this article, we attempt to estimate the real cost of bribes and corruption using various calculation methods and assumptions. And here’s the big number: the informal “taxes” we pay in the form of bribes probably add up to Rs 4,00,000 crore annually – nearly 6 percent of GDP. Add the big corruption scandals, and the figure could add up to 12 percent of GDP .
However, this bribe-related taxation is not discussed in open forums by businesspersons since they are worried about the next round of bribe-giving that may fall due. On the contrary, they even take out full-page advertisements to defend the stealing of public money – whether it is the allocation of coal blocks or airport land.
It is smaller businessmen who bear the brunt of this corrupt state. The smaller the business, the larger the share of bribe one has to pay the minions of the powers-that-be. For instance, a retail vegetable vendor earning Rs 400-500 a day may end up paying Rs 40-50 as bribe to the police and other agencies. This comes to nearly 10 percent of his gross income, and a phenomenal proportion of net revenue.
Government employees collect taxes on two accounts – the client account, which is intended for the government’s coffers, and the “personal account”, for their own pockets. Often, the “personal account” collections significantly exceed what is collected on the government account.
Innovative mechanisms are thought of by government officials to do this, as in the case of a registrar’s office in Tamil Nadu where regular “bribe collectors” are employed by officials. This way, even if they are caught, the actual bribe collectors can always deny any wrongdoing.
Collections on the “client account” can be done only by employees in tax-related (like direct and indirect taxes) departments. But “personal account” collections can happen in almost any human endeavour involving the state – and it can be collected through inaction, speed, inducement, lure, threat or intimidation by any government employee or his agent. It is to be noted that without political patronage “personal account” taxes – bribes, in simple terms – cannot exist.
We can call this “bribe taxes” to distinguish them from taxes imposed by budgets. It is also a total solution situation – imposed on us from womb to tomb. To get a birth certificate, parents need to pay a bribe upwards of Rs 1,000 in some states (depending on the number of originals needed). For collecting a death certificate, the payment can run into thousands of rupees if the government official senses that it is important for transferring a huge amount of assets.
Recently, there was a report suggesting that in government hospitals in Bangalore, a newborn child is shown to the mother only on payment to hospital employees engaged to provide this “service” to patients. The “fee” is Rs 300 for a boy baby and Rs 200 for a girl, which reveals an obnoxious gender bias, even in corruption.
Government employees collect bribe taxes from citizens on many counts, some of which are presented in the accompanying table. It is clear that the bribe tax collection is a birth-to-death levy and, more important, is no longer considered improper.
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