My neighbor Bachani earns at least ten times more than I do, yet he doesn't have to pay income tax. This is because his income is derived from farming. Many businessmen have bought small farms and are easily able to avoid paying income tax, claiming that they earn most of their income from their farms. Naturally all honest tax payers feel bad about this. Similarly retired government officers, judges and generals get pensions worth more than a million a month on which tax is not levied. Why should they be exempt?

This time the IMF has recommended that income tax be imposed on all annual pensions greater than a million. I don't think our bureaucrats will like this. They're sure to stampede all efforts to do so. 

All income, whether it is from agriculture or otherwise, should be taxed at the same rate. Presently incomes of up to fifty thousand rupees a month are exempted. Why? Whether a man earns twenty thousand a month or fifty thousand, he should pay tax, even if it is nominal. Unfortunately our leaders can't do it, because they fear they will not be able to win the next elections if they do so.