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Covid-19: Centre rejects IRS’ proposal of taxing the super rich, calls it an ‘act of indiscipline’

-Scroll.in

The finance ministry has directed the CBDT chairperson to seek an explanation from these officers for writing such ‘ill-conceived views’ in public.

The Centre on Sunday rejected a proposal made by officials of the Indian Revenue Service suggesting the government should increase taxes to cushion the economic fallout of the coronavirus pandemic. The Centre called it “an act of indiscipline”, NDTV reported.

In a 44-page report titled FORCE, or Fiscal Options and Response to Covid-19 Epidemic, officials who refer to themselves as “Team Force” made a series of suggestions for revenue generation. This includes increasing tax on the super rich to 40% from the present 30% and imposing higher tax on foreign companies.

“The estimate for gross tax revenue for 2019-2020 was revised lower to amount Rs 21.6 lakh from Rs 24.6 lakh crore announced in the previous budget,” the report said. “Even for the upcoming financial year 2020-’21, there is a target of 12% increase in the gross tax revenue at Rs 24.2 lakh crore. However, the slowdown in economy coupled with Covid-19 will dent the revenue collections especially in direct taxes.”

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