Tuesday, September 04, 2007

Exit tax?

The Acorn has a nice take on the Exit tax proposed by the "Hardly Required Department" Ministry. My first reaction when I read about it in the papers, was, duh !?

Who is to say that people contribute only while staying in India or employed to an Indian company? Indeed many people who are here do not contribute (the concerned ministry and other politicians included) and many people who are outside contribute to India - and I don't mean just people who happen to be Indians.

So, there should be an exit bonus as well - people who we are glad to see go. For these people, we will give them an exit bonus in return for a promise (and other enforceable conditions) that they will never return.

Coming back to the exit tax. Imagine someone went out of India, worked at, say Pepsico (ohhh - that evil MNC) and then came back as an expat and created thousands of jobs in India? Indeed many private companies have done so over the past few years. What if, the person went abroad to do a post graduation, came back a few years later and set up a firm that employed a few people? What if the person went abroad and came back to work for an Indian company?

If it were not for some brain drain that keeps happening, people would never realize that we have any brain, after seeing the drain our politicians keep creating for us. But, read Nitins post.

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