Reetu | Feb 28, 2022 |
Don’t Beg for Tax Relief; It’s Embarrassing: Revenue Secretary Tarun Bajaj
On Monday, the government made it clear that it was moving away from tax exemptions. While Finance Minister Nirmala Sitharaman has stated that India needs to “enlarge its tax base”, Revenue Secretary Tarun Bajaj has stated that tax exemptions “primarily help the superrich.”
“We have a new income tax regime without exclusions that will never take off if we continue to give exemptions,” Bajaj remarked during a post-Budget 2022-23 industry discussion in Chennai. “We should have greater tax slabs and lower tax rates that aren’t reliant on tax arbitrages that we’ve established in far too many things,” says the author.
“In 2019, 80 percent of the Rs.75,000 crore in capital gains were made by persons earning Rs.50 lakh and more,” Bajaj said of long-term capital gains. “Are you up to the challenge? Please do not inquire about these exceptions. It’s humiliating. We’ve already been accused of inequality, with the wealthiest getting richer while the poor go poorer.”
“We’re shutting our eyes and giving tax breaks to non-profit educational institutions.” Only the wealthy will gain from donations and tax benefits, according to the revenue secretary.
“Please tell us here where we can raise more taxes gently, this would enable us spend more,” said Finance Secretary TV Somanathan. “To enhance GDP spending on education to 6%, the tax-to-GDP ratio must be quadrupled from its current level of 10-11 percent.”
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