Swarajya, March 9, 1963
It is worthy of being brought over and over to the notice of the people, whose approval the Government asks for this taxation, that all taxes on whomsoever it is seemingly laid, really fall on the consumers and toilers at the bottom. The industrial structure of our economy converts all direct taxes into so many indirect taxes to be carried down to the consumer and the wage-earner. We have to pay more for everything, and we get less for the current rupee. If profits are reduced, the till out of which wages and bonuses come is reduced. Whether it is direct or indirect, whether it is levied at the Centre or at the State level, the burden impinges on the body politic at the lowest level, where all the weight has to be supported.
The budget is a disincentive from the point of view of industry. The States’ budgets, together with the Central budget will be a total disincentive for all production and a terrible lever for pushing up all prices. The taxation scheme of the Government is based on pure arithmetic without reference to psychology, political science or national conditions.
Had we a strong enough and well-organized Opposition, the position would have been different and the Government could have been compelled to go to the people. As things stand, the Opposition, such as it is, has only one way of expressing itself—total disapproval, and recording of a total negative vote. An extraordinary situation calls for abnormal action on the part of those who disapprove of the Government’s policies. It is also the only course consistent with conscience when one cannot stop the course of oppression.
The budget proposals sum up to stark oppression. Calling oppression by the name of ‘challenge’ cannot make the oppression less intolerable. It is a challenge in quite another sense from that in which it is used in the commendatory prefaces in the newspapers. Internal and external policies that lead to this pitch of taxation cannot be right and a government that resorts to it, and knows no other way, must be relieved of its charge. This is the challenge posed by the budget. It is worthy of being brought over and over to the notice of the people, whose approval the Government asks for this taxation, that all taxes on whomsoever it is seemingly laid, really fall on the consumers and toilers at the bottom. The industrial structure of our economy converts all direct taxes into so many indirect taxes to be carried down to the consumer and the wage-earner. We have to pay more for everything, and we get less for the current rupee. If profits are reduced, the till out of which wages and bonuses come is reduced. Whether it is direct or indirect, whether it is levied at the Centre or at the State level, the burden impinges on the body politic at the lowest level, where all the weight has to be supported.
The rule that as we sow, we would reap, applies in politics as in agriculture and morals. The people returned the Congress Party again to power and so this budget comes upon us. It is stark oppression; and oppression cannot be tolerated simply because of the situation created by the Chinese invasion last winter. The situation of danger to national security that has been disclosed by the Chinese operations of last winter cannot be met by oppressive taxation which will but undermine the moral stamina and vigour of the people, incapacitating them for effective defence, and it will also damage the prospects of increased production in the industrial and agricultural fields.
The defence of the country will be strengthened not by over-heavy taxation but only by increased incentive for production on the one hand and effective steps taken to present a military front wherein the Western Powers stand alongside of us against Communist China’s expansionist strategy, on the other.
The budget is a disincentive from the point of view of industry. The States’ budgets together with the Central budget will be a total disincentive for all production and a terrible lever for pushing up all prices. The taxation scheme of the Government is based on pure arithmetic without reference to psychology, political science or national conditions.
The foreign policy of exaggerated and foolhardy indifference to outside help and ungenerous reception of such help as is spontaneously offered, have resulted in this scheme of intolerable taxation. It is an indirect confession of failure.
Apart from the general blood-sucking proposed, the compulsory savings adumbrated will be the most harassing and corrupting new element to be spread over the entire land. It must result in fantastic proliferation of the government machinery and will be a splendid handle for intimidation and blackmail.
The political machinery of the Government of the country is jammed and does not permit the real will of the people being expressed by a rejection of the budget. It will be passed by the steam-roller majority of the present Parliament.
Had we a strong enough and well-organized Opposition, the position would have been different and the Government could have been compelled to go to the people. As things stand, the Opposition, such as it is, has only one way of expressing itself—total disapproval, and recording of a total negative vote. An extraordinary situation calls for abnormal action on the part of those who disapprove of the Government’s policies. It is also the only course consistent with conscience when one cannot stop the course of oppression.
