Innovations in IPOs – Reward the Tax Payer

In a country of over 1380 million people, it is estimated that only about 15 million pay income tax. That is just a little over 1% of India's population. Surely, in a largely agrarian country with an average per capita income of USD 1877 and in a ‘technical’ recession of late, paying taxes would be a challenge for majority of her people.

Innovations are a need of the hour. Innovations that benefit the citizens in more ways than one! Linking of investing in equity and encouraging tax-paying habit can be done together. It would be easier to do as there are more demat accounts than tax-payers!

It is time to seriously widen the participation in the market to help grow out of its perception of it being a ‘Club’ of rich urban Indians. Among the various options, the Indian taxpayer really deserves to be rewarded. They are the real heroes but their contribution towards nation-building has largely gone unnoticed so far. By rewarding the tax-payer and democratising the stock market, we will not only encourage the culture of paying taxes, we will also benefit the market by getting millions added as investors.

With the improvements in technology, the market access is not an issue anymore. Let people have an option of investing through Mutual Funds or directly through Primary or Secondary Market. Encouraging investing in an IPO would be easier than most other social initiatives already implemented.

Though the policy makers and regulators must have given a thought. It is time for a serious rethink. With the political will in place, the experts will solve the ‘how’ of the issue.

It is likely to be tough, but can be done!

Sushil Bahal is Managing Director of Raka Reputation Management Services Pvt. Ltd., a 20-year old, Mumbai based PR and Advertising company offering integrated communication solutions and maximum reach across 83 top media regions across India. Raka Reputation has experience across sectors, particularly Banking, Financial Services, Healthcare, Hospitality, Education, Lifestyle, Manufacturing, Technology, etc. Raka Reputation has been associated as a communications partner to some of the most complex challenges and nearly 250 IPOs.

Please visit our websites www.rakareputation.com or www.rakapronline.com for any further information. Sushil can be contacted on [email protected].