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LATEST NEWS UPDATES | Tax exemptions for rich costs govt Rs 4.6L cr

Tax exemptions for rich costs govt Rs 4.6L cr

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published Published on Dec 18, 2011   modified Modified on Dec 18, 2011
-The Times of India

The subsidy for the poor is dwindling, but this has not deterred the government from lining up corporate houses' pockets.

Last year, the Centre gave away potential revenue of Rs 4.6 lakh crore on account of various tax exemptions and incentives to industrialists, compared to the Rs 1.54 lakh crore on subsidy to poor and farmers. There are direct tax incentives and exemptions to businesses in the corporate sector in the form of profit and investment-linked deductions, besides other freebies that together accounted for Rs 88,000 crore, the finance ministry informed Parliament in response to a question.

The incentives on various exemptions for central excise and customs duties were Rs 3.73 lakh crore in 2010-11. This, however, does not include revenue foregone on account of input tax neutralization schemes for export and service tax exemptions, according to the finance ministry.

On the contrary, in the last fiscal ending March 31, 2011, the government had spent about nearly Rs 1.54 lakh crore on subsidies for aam admi - comprising Rs 60,600 crore spent on food, Rs 55,000 crore on fertilizer and Rs 38,000 crore on petroleum, kerosene and LPG. The exemptions to the rich have been going up every year. It was Rs 4.20 lakh crore in 2008-09 and raised to Rs 4.37 lakh crore the next year, which further went up to Rs 4.60 lakh crore in 2010-11.

Though the subsidy for the poor has gone up too, they are much less than what rich have been provided with. The government's expenditure on subsidy was Rs 1.29 lakh crore in 2008-09; Rs 1.41 lakh crore (2009-10) and Rs 1.54 lakh crore (2010-11). This has been brought down to Rs 1.44 lakh crore in 2011-12.


The Times of India, 18 December, 2011, http://timesofindia.indiatimes.com/india/Tax-exemptions-for-rich-costs-govt-Rs-4-6L-cr/articleshow/11149543.cms


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