Guilt, Pain and India’s Economic Ritual Cleansing

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News Article

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As I sat chilling in a tea shop in India, a man ran from store to store yelling “he is here.” My friend, the shop owner, quickly gathered and dispatched his cash. The local early-warning-system for the tax collector had been activated. The tax auditor was making the rounds.

The first few businesses audited take a hit, but the neighbourhood watch made sure the majority evaded taxes. Conservative estimates suggest that for every rupee collected in taxes in India, at least two rupees remain outstanding. Compare this to $2 evaded for every $10 collected in the U.S.

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Toronto Star