Let's say you donated Rs 500 to the PM/CM fund.
On the other hand, I bought alcohol worth Rs 500....
The question is who contributed more?
1. On the Rs 500, you donated, you got a 30% tax rebate. Therefore, you actually landed up earning back Rs 150. In other words, by donating Rs 500, you made a net contribution of just Rs 350.
2. On Alcohol, the total taxes (excise and GST) added up to approximately 72% of the MRP. So when I paid Rs 500, Rs 360 went to the state exchequer...
...but about 12.5 pegs of a 750 ml bottle went to me.
Therefore, not only did I contribute more, I felt high spirited doing so, while you didn't even know where your money went.
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