It pays. Or does it?

Now here's something that made me sit up and take notice. With a total of five years of economics behind me, I am, academically, considerably acquainted with the concept and the mechanics of taxation. There's a faint personal acquaintance, too - the sort engendered by eleven months of paying taxes and a week of running around like a headless chicken when it is time to file returns. And, of course, there's Marketing, the other love of my life. But this is the first time I have seen the two coming together, and to call the phenomenon merely interesting would definitely be an understatement.

The first thing we were taught about taxes was that there is no quid pro quo involved. Taxes are unilateral payments made by households and firms, which are meant for the government's coffers. That they form a substantial portion of the government's revenues goes without saying. And while it is implicit in Public Finance that proceeds from taxation are used for the benefit of the economy, no individual is entitled to ask for anything specific in return for the taxes he pays. That's what theory says, and that's exactly what is borne out - more emphatically than is needed, if you ask the average citizen - by the actions of the government.

So I'm sure we have all either been - or seen - the person who wonders exactly where his hard-earned money is going, every time he drives over a potholed road or glances at literacy or health-related data in journals and papers. There are ways of questioning the government about its measures and policies. But if Household A paid Rs 60,000 in taxes this financial year, they cannot go asking for benefits worth that amount, or even question the use of the funds.

Which is why I did a double-take when I first spotted a half-page ad in a national daily, reading "Have you paid your taxes yet? You pay - the country pays back!" Of course, there's absolutely no implication that there is any quid pro quo. But what is fascinating is the attempt to address the cynicism that has come to characterise the attitude of the average tax-payer, some of it justified, some not. There have been attempts and platitudes before...this one is a novelty simply because it has been put down in black and white. Positioning taxation as an activity with moral and patriotic appeal - that's a first! Undoubtedly, there are several reasons - the moral and patriotic included - why one should pay one's taxes. There is also, by corollary, an equal number of reasons why that money should be put to honest use by the exchequer.

That is what makes this campaign intriguing. One hopes to goodness that those who designed the campaign will also remember that the job isn't complete till the promised value is delivered. If, after a colossal exercise like this one - it must have cost them a pretty penny; guess where the money came from! - tax-payers don't get to see exactly how the country is "paying back", the campaign will backfire on a similar scale. Public memory, usually notoriously short, is not equally forgiving when money from its pockets is involved. One recalls a certain campaign that claimed India was shining. Appalling people with the enormous wastage of taxation money, it succeeded only in eroding goodwill away from the ruling coalition. So, yes, while it is great to be told that the country will pay back, some evidence that the promise is being kept will go a long way. Do I sound cynical? I'm afraid that's how I feel. :)