(1) Tax on Agriculture produce: One acre of land produce about Rs.25,000 of agriculture products in one year. We can tax 1% on produce, which is about Rs.250 per acre. Our goods produce is about 25% of GDP, which is about US$200/- billion. You can collect tax about US$10/- billion to US$20/- billion per year, if tax is 0.5% and 1.0%. This can be invested in micro irrigation, check dam and farmer education to increase production and government get more tax. This is power of compounding:
(2) Tax on temple money collected per year: Many temples are rich and what they do with money? I go to one of the rich temple in Rajasthan. Town is same as 20 years before. There is no proper road and college. How much tax? that can be debated.
Gajaria Gokal
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