A letter to the finance minister

Vivek Sharma
17 December 2007

As he works on his next budget, here's a short letter to the finance minister with a plan that will make him an even larger legend with the middle class.

Dear Mr Chidambaram,
Ever since the annual budget presentation became a major media event, with of course you as the star, I have been desperately trying to offer on television a nugget or two of free wisdom on fiscal policy and earn my few seconds of fame. But, I have been unlucky so far. So, this year I decided to be the first off the block and offer you some free advice. I am a bit embarrassed to say this, but my real intention is to catch the attention of those television channels that, I hope, will carry me live for a second or two on your big day.

I am not going to pretend that I am an expert in public finance policy, though, if someone asks, I won't hesitate in giving my expert opinion. Anyway, you have many experts to consult on larger policy issues. So I will focus on only one area in which I have some experience and will also share with you some personal observations that maybe of use to you.

Sir, I am a tax payer. An honest one? Hmm….. yes, but not that I would always prefer to be so — if I have a choice. I don't have a choice because you force my employer to collect your due from my meagre income every month. And once you have collected your share, I have no way to fool you and take back at least a part of it. Yes, you have granted us many tax breaks if we do this or if we do that. But, as you probably know, they don't add up to much.

Yes, I can claim more if I take a home loan. But, I am a bit scared of being indebted for the next 20 years of my life – shorter duration loans won't buy me the minimum two-room space our small family needs in the city we live. For the last three years, I have been waiting for home prices to come down, and am still waiting. Yes, like most of those my age who grew up in a socialist environment, the ability to be patient is the most developed of my survival tools – though very often the result is considerable personal injury in terms of lost opportunities.

Two years back you introduced this incredibly innovative tax called fringe benefit tax or FBT. But my employer is not as brilliant and benevolent as you are, and has cut almost all our so called fringe benefit that we enjoyed as perks because they add to his costs! Besides, my employer claims, the FBT returns are too messy and the tax consultant was charging a bomb for preparing the tax returns. I am not sure if my employer has heard your repeated statements that FBT will not add to employers' costs and that filing the return is a breeze. I will never blame you for my lost benefits, I fully appreciate your compulsion to add FBT to your many such innovations.

The other day I saw the new advertisement from your ministry on television – the one which reminds us to pay advance tax so that important people like you can build this nation. Brilliant ad, I must say, with inspiring visuals. There is a scene showing a group of people, presumably honest tax payers, walking out of a building at the end of a hard day's work. I really didn't know you and your tax collectors thought so highly of tax payers. I could clearly see myself in that group and felt so proud about my humble contribution towards your government's nation building efforts. I had goose bumps, really!