Exit Tax
I recently read an interesing article in the Indian Express.
http://www.expressindia.com/fullstory.php?newsid=49764
The article talks about how the Indian Government should try and collect an "exit tax" from graduates who move abroad and stay there.
Collecting an exit tax of $10,000 (About two month's salary) would net about 4,400 crores, money that could be used in a variety of different ways.
There is no doubt that Indian education is highly subsidised and students are given the advantage of this subsidy on the premise that they would stay in India and contribute to India's development directly (Not indirectly - We'll come back to this point). For example, the University Grants Commission contributes 26 crores annually to BITS, Pilani. So at about 2,600 students, thats roughly a lakh per student per year.
And of course the subsidy in the IIT's and other government-run institutions is much higher.
There is often a claim that people who settle abroad generate more benefit for India than if they had stayed in India. I think this is not accurate, because in addition to the amount they earn and send back home, they are creating jobs abroad that potentially could have been created in India, creating more wealth in the process.
An exit tax is a good idea.
http://www.expressindia.com/fullstory.php?newsid=49764
The article talks about how the Indian Government should try and collect an "exit tax" from graduates who move abroad and stay there.
Collecting an exit tax of $10,000 (About two month's salary) would net about 4,400 crores, money that could be used in a variety of different ways.
There is no doubt that Indian education is highly subsidised and students are given the advantage of this subsidy on the premise that they would stay in India and contribute to India's development directly (Not indirectly - We'll come back to this point). For example, the University Grants Commission contributes 26 crores annually to BITS, Pilani. So at about 2,600 students, thats roughly a lakh per student per year.
And of course the subsidy in the IIT's and other government-run institutions is much higher.
There is often a claim that people who settle abroad generate more benefit for India than if they had stayed in India. I think this is not accurate, because in addition to the amount they earn and send back home, they are creating jobs abroad that potentially could have been created in India, creating more wealth in the process.
An exit tax is a good idea.
Comments
I agree with all of your points, and action has to be taken on them.
1. Paying tax in the US doesnt benefit India
2. Lets not worry about other people (Farmers, actors etc) - Lets just look at ourselves (NRI's and try to do whats fair - Indians has a tendency to use other people's inaction as an excuse for their own inaction.