The natural question from the preceding paragraph is that if all taxes such as central excise, sales tax, octroi are abolished, how government will run. One thing is sure that Government should not run if it runs as it runs today. At present, there is heavy wastage and extravagancy in the Government. There is no place for frugality in the Government. Present policy is to suck the blood of the entire population and pamper the bureaucracy. This can never last forever. Salaries to bureaucracy should be in proportion to the income of common people. Government officer should be real servants of common people. They should not have power to harass the people. So lakhs of Governments servant are not required. A few will do the job. Their salaries also will not be very high. So figures of the budgets will be reduced to only 1% of the present budget.
If Government runs with clean honesty, a new system of imposing the tax only on rich people will be enough. For this purpose, tax on luxury goods or luxury expenditure will serve the purpose. E.g. Government can meet the badly necessary expenses by imposing the tax on motor car, scooter, air conditioner, bungalows, luxurious flats etc. Tax collection authority will be Gram Panchayat or municipality only. No any State Government or Central Government will have any power to collect the tax from general public. Central Government will have only power to collect custom duty on import of goods.