RBI vs PayPal – RBI sets to kill freelancers


RBI vs PayPal

RBI’s recent directives which limited the transactions of through Online Money transfer entity PayPal was aimed at tightening the hold on freelancers’ and regulating them for taxes. All sorts of freelancers and small-scale service providers,- small data entry firms, medical transcription providers, copywriters, web designing firms, report writers, freelance software developers, graphic designers, animators and many more falls in the list who are to be regulated and hit with tax enforcement. But the big question is why the RBI is trying to jump into the field of taxation, especially bothering about the income tax of freelancers when it should be the call of the Income Tax Authority of India to indulge in such matters. The Reserve Bank of India is not mean for issuing and bothering about taxes of individuals and we can clearly sense a foul play resting beneath the RBI’s proud claims.

It is indeed shameful that our Government can impose taxation on small-scale entrepreneurs or freelancers who work for foreign customers or firms over the internet for their bread and butter. The Indian Government have never been able to assist these freelancers with any business or employment opportunities, never attempted at setting up an international scale infrastructure of freelance business and in fact, could never even provide the sufficient or continuous power supply for any online business to scale up. The RBI or the Government, by restricting the amount of money flow in each transaction has only added to the woes of the freelancers who would now be spending huge amounts of money as charges for online withdrawals and losing substantial amounts in the conversion of dollar-rupee.

The freelancers who earn by providing services to clients abroad with their own talent and who have never seen any help from the Government for their enterprise to develop or for them to be employed ideally they should not pay any tax other than the service tax of their internet service providers. Unfortunately, the Government of our country thinks otherwise,- they just need more and more money to be extracted from the common men (though it can do nothing to recover the millions of black money hidden by filthy rich Indians in Swiss banks), even if this kills small scale and budding entrepreneurship in the country. And not to forget the big firms and the capitalist lot would, of course, reap off great benefits,- it’s a really good time to capture some market, which otherwise was ruled by the low-cost service providers and freelancers. RBI’s dictatorship shows true signs of the same underlying conspiracy by the Indian bureaucrats who never cared for the aam aadmi but only for their pockets.

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RBI vs PayPal – RBI sets to kill freelancers

By: Priyankan Goswami Read time: 7 min