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What's wrong with an exit tax on IIT and IIM grads?
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September 10, 2007

Based on a recent report of the parliamentary standing committee of the union Human Resource Development ministry that wanted to impose an exit tax on IIT and IIM students leaving India we asked our readers about their views on the topic.

Here is the detailed and unedited response of those readers who want the government to impose an exit tax on IIT and IIM graduates.

What's wrong with an exit tax?

I think it's a right move, the subsidy given by government to these institutions are from the tax money paid by general public. Why should it be put in some thing which has no benefit for India when these selfish people has to go out of country and feels no duty towards their country.

I think to make sure the money collected from the exit tax is utilised properly, a separate corpus can be created and the same money can be put for betterment of education system in India. CAG should look in to, how this money is being used. It's a right approach, what's wrong in it.

Rajneesh Kumar Chaturvedi

Why does one have to subisdies a guy who is going to earn a least Rs 10 lakhs plus per annum?

As a student from an IIM I wholeheartedly accept that there should be some way for us to repay back.

In the first place why does the government have to subsidise it. Students from these institutions can get loans easily which they can repay later. Further there are scholarships for the economically weak.

Why does one have to subisdies a guy who is going to earn a least Rs 10 lakhs plus per annum?

The government can use these funds to run a school in a village. The amount used to subsidise each IIM student can be used to run a school for a year in each village.

Let us see what happens in the future. Hope they don't repeat the mistake that the previous NDA government tried, to further subsidise them, to reduce the fees to Rs.30,000.


Impose a very high exit tax

Yes, we should invent new methods to contain losses we suffer because of brain drain.
Its sheer business; if IITians and IIMians do not think about counrty then we should not think about them. We should make it purely business deal. Give money for getting educated and then go wherever you want.
and that money should be very very HIGH

Manoo Kaushal

Exit tax? Yes

Why not....They can very well afford it....we tax salaried class who earn very less....why not tax IIT/IIM people who are running out of country "only" for big money.

Saket Vasisth

A definite yes to exit tax

Definitely they can afford it and it is very very fair to do it. We cannot stop brain drain without first developing our country for which we need huge money. Indians are rich but India is still poor. Those people who go abroad for the sake of money definitely have to give back something to the country at least for the cause of the huge money spent on them. Indian government need not spend money to train these students and provide them with good faculties and facilities just for some other country to exploit them and make money out of them out of which an insignificant portion is given to the candidate abroad. However since the rupee value is gets huge money when that insignificant amount is converted to rupees and seen. However what have these people who went abroad and made money for their selfish needs ever given anything back to the country. Out of 100 students who go abroad, only one or two return back to the country to develop this country. That being the case..the only way out is to develop this country and attract talent worldwide. India should be capable of providing high salaries as given abroad...only this can stop brain drain. And one good way to do this is to give lots of money to the government. These IIT/IIM definitely deserve to pay this exit tax.

Susinder Rajan

Tax everyone

Every individual who goes abroad for higher studies or job should be taxed irrespective whether he is an IIT or IIM graduate as each individual has a responsibility. Brain drain should be taxed and its wrong to tax only the bright students who are graduating from premier institute.

Oommen Oommen

The idea makes sense

All the government Education Institutes run on the money paid by the Tax Payers so the education is cheap.
If the person who makes use of the money tax payers in India have paid for his / her education and then goes to another country to work it is benifitial to the person, country he / she has shifted.

So the idea that the person should pay the Indian government (the indian tax payers in a way) makes sense.

Umesh Kulkarni

Increase fees to realistic levels

Pal %u2013 You are right! Why should Indian tax payer pay for their career abroad. Nerthless, this is another of those pea brained scheme of our Parliamentarians!! Even if they go ahead, do you think this is implementable?
Solution - Increase fees to realistic levels and arrange loans for students. They can easily payup after they complete their courses.


We lose good brains

Buddy you need to underatsand indian economics better. Why should country spend rs10 lac on one iit pass out who afterwards leave our country via iim? Does it make any sense that tax payer's money should be used to cater the needs of foreign companies. We should thank the indian government who is still helping the u.s companies to get what they want. First of all we loose good brains and then good 10 lacs. 9 lacs is the average salary of iim's which is equivalent to a sweeper's salary in U.S so they are getting brains on the same cost which they give to clean their country to an individual isn't it great. I am not against why they move out but they have some responsibilty towards the country also no matter how are our politicians. It is the youth who needs to take some initiative for the growth of our India.

Akshay Gupta

It's fair and not a wrong idea

The issue being discussed here is about recovering the subsidy provided to IIT & IIM students.

Spending a large sum of money on a few students - who are very good like you - means that others are deprived of those resources - for drinking water, healthcare and primary education.

The least we can expect for students who have taken advantage of a govt. subsidy - be it IIT/IIM or any other institute - is a repayment in one form or the other.

Suggest we charge a differential fee for students who want to stay in India for 10 years before going to work abroad, in govt funded institutions. Other who are in a rush to leave the country immediately can pay a higher fee for the advantage he government has given them.

Its fair and not a wrong idea.

Vivek Tandon

Dedicated to service of United States of America

Why should government take the burden of spending "Rs 1.5 lakhs on every IIT student per annum" and
"Rs 3.5 lakh per annum for IIM student" when it is not getting intended service from them.The entrance of IIT Kharagpur main building you can see "Dedicated to service of Nation" board. Instead,it should be written "Dedicated to service of United States of America".

Reduce subsidy on these institutes, let the students pay fully for their studies. Keep some provision for poor and needy students.
There is no dearth of brilliant students in India. It does not matter if some students leave the country for greener pasture abroad and never come back.They were never Indian in true sense.

S Kumar

The idea is good implement it quickly in true spirit.Don't waste time.

Sannibabu Ambati

Exit Tax should be there

yes, I am in strong favor , Exit Tax should be there, In India we have a lot of job but IIM and IIT prefer to go outside only for the money, not for only job. If they r going for money, why not they pay tax. After all Govt is paying for their education which come from pocket of many tax payers. Exit Tax should be and at least 2-3 times of amount spent on their education by Govt.

Poonam Agarwal

Yes there should be a tax/alternative

The educated youth of India are a pampered lot. They get talked about as strength of the Indian economy, workforce of the future in all global meets. But a question should be asked: How much do they really give back to the country?
If educated youth os a strength in India, then why is there a scarcity of Doctors, Civil Engineers, and top notch management graduates in the country.

Brain drain has been a problem in India for almost 10 decades now. In the early 20th century, semi skilled workers from North india migrated to the Americas and Europe. Post independence, it is the educated upper class from the west and south of India that migrated. Students take the easy route of further study for an access to the coveted Green Card.

Alternative to taxing these students would be make internship in a public sector company for tw years compulsary. This way the government recovers its investment in the form of the intellect and the economy benefits too.

Sharnag Pant

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