Feed Posted August 20, 2007 Share Posted August 20, 2007 Parliament's standing committee has recommended taxing students who take up overseas jobs after graduating from premier higher education institutions. More... Students taking up jobs abroad must pay tax: House panel 20 Aug 2007, 0134 hrs IST,TNN NEW DELHI: Parliament's standing committee on HRD ministry has recommended taxing students who take up overseas jobs after graduating from premier higher education institutions and their employers as well. Called "graduate tax" and "exit tax", the standing committee has argued that such a system is in vogue in many countries. However, it did not mention the name of these countries. In its report, the committee said graduate tax was levied on those who used the services of trained manpower. "An employer is required to pay an annual tax to the government for each graduate recruited by it," the committee said, while admitting that the scheme had a major drawback as it might lead to substitution of university graduates with less educated manpower. "Nevertheless, the committee feels that taxing employers based on the type and number of manpower they use has a good rationale and should be considered seriously for implementation," the report said. In its reply, HRD ministry said the committee's suggestions would be conveyed to the finance ministry and the University Grants Commission. The parliamentary panel said the imposition of exit tax on students taking up foreign jobs after obtaining their degrees, particularly from premier institutions which are run with massive state subsidies, was suggested by some experts. They argued that the expenditure on such students did not provide any returns to the country. Link to comment Share on other sites More sharing options...
King Posted August 20, 2007 Share Posted August 20, 2007 That is one strange recommendation. Which countries have this policy BTW? As if the govt doesn't tax people already enough even the ones that migrate elsewhere are being forced to pay tax on earning elsewhere. Why would anyone like to pay double tax? More than anything the reason you pay tax is to ensure there is fair bit of contribution back to the society/community. If you aren't using the amenities at any particular point in time (while living overseas) why should you be paying the tax? Link to comment Share on other sites More sharing options...
beetle Posted August 20, 2007 Share Posted August 20, 2007 Ravi...most higher education in India is highly subsidised and this move makes sense. Hardly any people pay taxes in India .....and this money can be used to better primary education. I know so many doctors and engineers who have got their degree but not working as doctors (which this country badly needs) or engineers but doing management courses. Link to comment Share on other sites More sharing options...
King Posted August 20, 2007 Share Posted August 20, 2007 Is that right Radhika? That said education is pretty much free here too but till about varsity. Even otherwise the fees are not too bad and the govt does lend an interest free student loan over here. It's up to the person to choose where he works right? Just because he was educated through a subsidised varsity he can't be demanded to pay the tax. How about his parents that contributed to the govt via taxes? What benefits they got out of it in the first place? If their kids got something out of the system it sure wouldn't have come free given they contributed to the taxes. If they didn't pay tax at all then that's a different case. Link to comment Share on other sites More sharing options...
beetle Posted August 20, 2007 Share Posted August 20, 2007 Ravi...India is a developing nation with a huge population that needs basic education.I think not just people leaving the country ...but everyone who has used subsidised education should pay back some of it back once they get a job. The subsidised education is given so that the students can work and serve the nation and hence in a way pay back the govt in some way. But with a lot of people opting to go out......the govt will probably have to increase the number of education institute just to meet the demand of the nation.Hence I think the tax is justified .I am sure paying back a soft loan of a few lakh rupees is not going to be so tough for most people. If the money is utilised for a good cause ...then it is worth it.This money could be used to help out students who cannot even pay the subsidised fees. Link to comment Share on other sites More sharing options...
beetle Posted August 20, 2007 Share Posted August 20, 2007 >>>> How about his parents that contributed to the govt via taxes? What benefits they got out of it in the first place? Most parents in India do not pay income tax.... Besides you can't compare Newzealand with India Ravi.........The number of people in India that need education is mind boggling.And the fact that the majority of the parents can't even pay the subsided fees means that the govt has to bear most future costs too. I hardly get paid anything as a teacher but I wouldn't mind paying back the money over a period of time if I knew that the money was being used for a good cause. Link to comment Share on other sites More sharing options...
King Posted August 20, 2007 Share Posted August 20, 2007 Ravi...India is a developing nation with a huge population that needs basic education.I think not just people leaving the country ...but everyone who has used subsidised education should pay back some of it back once they get a job. The subsidised education is given so that the students can work and serve the nation and hence in a way pay back the govt in some way. But with a lot of people opting to go out......the govt will probably have to increase the number of education institute just to meet the demand of the nation.Hence I think the tax is justified .I am sure paying back a soft loan of a few lakh rupees is not going to be so tough for most people. If the money is utilised for a good cause ...then it is worth it.This money could be used to help out students who cannot even pay the subsidised fees. I get your point but a similar idea if brought up here would create a havoc. Link to comment Share on other sites More sharing options...
beetle Posted August 20, 2007 Share Posted August 20, 2007 In India.....the majority of people will be beneficiaries of such a scheme ..hence will probably find more support.Middle class is likey to lose but if you keep the bigger picture in mind...it is not so bad. Link to comment Share on other sites More sharing options...
Lurker Posted August 20, 2007 Share Posted August 20, 2007 NEW DELHI: Parliament's standing committee on HRD ministry has recommended taxing students who take up overseas jobs after graduating from premier higher education institutions and their employers as well. Called "graduate tax" and "exit tax", the standing committee has argued that such a system is in vogue in many countries. Long time coming but certainly a step that needed to be taken. If you pass out from one of the elite institutions of India, after having got your education courtsey the tax rupees put forward by Indians, you better pay that back in one form or the other. As it so happens a vast majority of students study and leave immediately for greener pastures. The report is right to suggest such concept is also held abroad. Only recently I head on NPR radio about setting up of a multi-million dollar institute in USA where students would be exclusively taught about Social Studies, a real top of the line place. And once you are a graduate you spend atleast 3-5 years doing what you have been trained to do. The idea is a brainchild of couple of young blokes and is being supported by, amongst others, Hillary Clinton so you may hear about it more soon. xxx Link to comment Share on other sites More sharing options...
Guest dada_rocks Posted August 20, 2007 Share Posted August 20, 2007 Actually sometime back iit kanpur administrtaion had started this to raise fund for the isntitute.. Don't know how successfulthat that step was........ Link to comment Share on other sites More sharing options...
coffee_rules Posted August 20, 2007 Share Posted August 20, 2007 How is the Alumni culture in IITs? Do they contribute anything back to the institutions? Link to comment Share on other sites More sharing options...
Guest dada_rocks Posted August 20, 2007 Share Posted August 20, 2007 Lack of fund seldom stops any project.. but the richest is IIT Mumbai and Kharagpur Link to comment Share on other sites More sharing options...
Holysmoke Posted August 20, 2007 Share Posted August 20, 2007 what kind of bs is this.. graduate tax? whats next? school tax? Link to comment Share on other sites More sharing options...
Lurker Posted August 20, 2007 Share Posted August 20, 2007 what kind of bs is this.. graduate tax? whats next? school tax? Thats not bs, thats just the ignorant mentality of an Indian student. An Indian student who goes to school(other than a Government school) ends up paying a good 1000 Rs per month. In big towns this is many times more with a lumpsome donation to boot. The same student when he goes to an Engineering/Medical college pays lot less(towards his studies). My 1 year Engineering fees were almost as much as my one year of school studies. WHy? It was heavily subsidized of course. Ever wondered how an American student pays outta his a$$ to get Graduate while Indian student doesn't? xxx Link to comment Share on other sites More sharing options...
Guest dada_rocks Posted August 20, 2007 Share Posted August 20, 2007 This ideas sounds well-intentioned but I see some snag in its implementation. Graduates of these institute would look for job gaurantee in govt firms ( yes yes I know noone looks forward to this kind of job) but theoretically when u are accusing someone of not doing his bit by not taking job in india and preferably in govt institutes u got to walk the talk and offer them the job in first place . Link to comment Share on other sites More sharing options...
yoda Posted August 20, 2007 Share Posted August 20, 2007 Lurker, where does the money to pay for all these higher education come from? Wonder who paid the taxes in the first place? Hint: The parents of ???? Link to comment Share on other sites More sharing options...
Guest dada_rocks Posted August 21, 2007 Share Posted August 21, 2007 yes bharat ( rural india) is the biggest tax-evaser.. gets all the subsidity but when it comes for ciriticism bulk of the share goes to those who actually pay tax.. PS: I have association with both bharat and India Link to comment Share on other sites More sharing options...
Gaurav Posted August 21, 2007 Share Posted August 21, 2007 Would it not be better that people who go to these institutes are made to take out low interest govt. student loans? Then when they graduate they pay off the loan and that would be end of the story? Link to comment Share on other sites More sharing options...
Guest dada_rocks Posted August 21, 2007 Share Posted August 21, 2007 that wud be great,, but when that happens communazis will go on rampage calling it anti-poor stand.. In fact even today whatever fee is there if u are unable to pay banks bankroll it through loan.. there is another problem with this though, educated indianns seem to be very corrupt.. just check the roster of education loan-defaulters u will find IIM grads lead that chart consistently Link to comment Share on other sites More sharing options...
beetle Posted August 23, 2007 Share Posted August 23, 2007 Jab Pesident (family) default karne mein sbse aage hain to aur log kyon peeche rahen...:confused_smile: Link to comment Share on other sites More sharing options...
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