Lets first understand with term “ Tax”.
Now the tax is mostly paid by the class of society that earns more or spends more.
A tax is inseparable part of an economy, required to run it properly.
This same ‘tax’ helps in filling the gap of rich and poor to some extent otherwise poor would die of poverty and scarcity. A country like India which has huge population that belongs to underprivileged section of society needs backing up to survive.
A huge gap of distribution of income would increase purchasing capabilities of high income group and bring misery to low income group. Not a good sign for country as whole.
So taxing the high income group or taxing luxury product / services and using same to sort out problems of lower income group balances the economy of gap.
Since childhood we know about food rationing ( lower income group gets grains, pulses, oil for free), now if this has been extended to electricity / water its okay.
Economically, I do not see any harm in this to improve or balance the Indian conditions and image.
But if we talk about unemployment allowance or distribution of cash or distributing mobile phones to public, that would be a blunder , it would eat up the basic idea of assistance to poor or weaker section just like what reservation has already done, this would be something to use taxpayer’s money for own political benefit. You can call it a ‘revdi’ in that case.
I have heard same type of scheme being launch by Congress govt in Sep 2023 where they are distributing mobile phones to women with free data plan. This is a waste of money. The money should be spent on setting up business which can provide employment.
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