Taxpayers Propose Taxing Super Rich Covid Relief As Steps To Combat Pandemic In Policy Document
Titled as FORCE (Fiscal Options and Response to the Covid-19 Epidemic), the policy document has a series of measures to increase revenue and provide relief to the economy hit by the pandemic.
By stating that in times like these, the so-called “super rich” have a greater obligation to guarantee the broader public good, the document has recommended that this segment of the population can be taxed through two alternative means, which can prevail for a limited and fixed period of time. It has supported raising the highest slab rate to 40% for total income levels above a minimum threshold of Rs. 1 crore or reintroduction of wealth tax for those with a net worth of Rs. Rs 5 million or more.
Administratively, the first will be easier to implement. However, the revenue gain associated with both options should be calculated to see if the gains associated with the last option perform better in terms of a cost-benefit analysis, ”the document reads. He said that the collection of additional income through any of the previous steps is Rs 50,000 crore, this amount should be placed in a separate kitty, almost like an escrow account.
The government can then identify between 5 and 10 more crucial projects / schemes that involve significant spending, which are likely to have a decisive impact on the revival of the economy. The costs associated with such projects will be calculated, and these projects must be listed on a government website, accessible to the public. The government should commit to the fact that the additional revenue raised by taxing the wealthy will only be used for these 5-10 projects / schemes. Additionally, the website should display a live expense counter for each of these projects / schemes, which will mention the expenses incurred to date, he said.
“Such visibility into the direct and immediate use of resources is likely to ensure greater resonance and acceptance among taxed subjects, and provide greater satisfaction and a direct sense of contribution to this population,” the newspaper said.
It also requested a one-time additional 4% halt because of COVID Relief (could be called COVID Relief Cess) that could help finance the capital investment in COVID Relief work. The additional income mobilized in this account could be between Rs 15,000 – 18,000 crores. To mitigate further difficulties in the middle class, the cessation may become applicable only in cases where taxable income is greater than Rs 10 lakhs, the document suggested.
He said the government needs to spend considerably more to revive the economy; And you need to raise additional income, but in a way that you should not overburden the already distressed common man.
“The CBDT has sought feedback from our field formations across India on ideas to revive in various sectors of the economy. While the combined comments will certainly help determine the way forward as we work to bring the nation back to health and the economy back on track, we have also received a document jointly prepared by a group of 50 officials from the Indian Tax Service (IRS). ) of the Income Tax Department on policies and suggestions to face the challenges we may face. in the process.
Working from home, they have come together to leverage their combined knowledge, experiences and commitment to build a healthy, strong and prosperous India, “said Prashant Bhusan, secretary general of the Association of Indian Income Services in his letter to the president and members of CBDT of the board.