IRS Officers Offer Economy Revival Plan Tips to Government, Suggests Super-Rich Tax in Corona Crisis
New Delhi : To tackle the coronavirus epidemic, tax authorities have suggested that a tax of 40 per cent should be levied on the rich people to meet the challenges in this crisis. At the same time, it has been suggested to impose a higher rate of tax on foreign companies.
Suggestion of super-rich tax :
In the circular, the government has given some short-term suggestions to raise resources to meet the cost requirements to deal with this crisis. One suggestion is super-rich tax. It said that tax should be increased from 30 to 40 percent on people with income above Rs 1 crore. Apart from this, Estate Tax or Wealth Tax should be imposed on people with an annual income of more than five crore. These suggestions given for short intervals mean a period of three to six months. In the circular dated 23 April it was stated that the tax-surcharge imposed on the super-rich in the budget, the government is expected to get only Rs 2,700 crore. In such a situation, it has been suggested to increase the tax slab for the super-rich. Taxpayers with a taxable income of more than Rs 1 crore fall in the category of ultra-rich.
In the circular, the government has given some short-term suggestions to raise resources to meet the cost requirements to deal with this crisis. One suggestion is super-rich tax. It said that tax should be increased from 30 to 40 percent on people with income above Rs 1 crore. Apart from this, Estate Tax or Wealth Tax should be imposed on people with an annual income of more than five crore. These suggestions given for short intervals mean a period of three to six months. In the circular dated 23 April it was stated that the tax-surcharge imposed on the super-rich in the budget, the government is expected to get only Rs 2,700 crore. In such a situation, it has been suggested to increase the tax slab for the super-rich. Taxpayers with a taxable income of more than Rs 1 crore fall in the category of ultra-rich.
50 IRS jointly prepared the plan :
This circular has been prepared by a group of 50 IRS officers. It has also suggested increasing surcharge on foreign companies operating in the country to raise additional revenue during the medium term i.e. 9 to 12 months. These companies now have a surcharge of two percent on income of one to ten crore rupees and five percent surcharge on income of more than Rs 10 crore. Officials have also suggested imposition of Corona virus cess to raise additional revenue. It states that a one-time four percent COVID relief cess will help finance the necessary capital investment. According to preliminary estimates, Rs 15,000 to 18,000 crore can be raised from such cess.