India Inc opposes higher tax for rich

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ENS Economic Bureau: New Delhi, Jan 16 2013, 01:25 IST

Ahead of a pre-Budget discussion with finance minister P Chidambaram, India Inc on Wednesday hit out at the proposal to tax higher income groups at differential rates.

At a meeting with Prime Minister’s Economic Advisory Council chairman C Rangarajan, industry chambers opposed a plan to levy an inheritance tax or taxing the super rich at a higher rate, saying that it would be counterproductive

Adi Godrej, president, Confederation of Indian Industries and Godrej Group chairman said, “Talks of inheritance tax and other such measures of additional taxation could negatively impact sentiments.”

FICCI in its representation to the PMEAC said, “...any proposal to introduce higher tax rates or inheritance or similar taxes would be highly regressive and ultimately prove counterproductive.”

The proposal was originally mooted by Rangarajan, who is a key aide to Prime Minister Manmohan Singh. But the proposal had not found favour with economists.

Industry chambers also sought policies for completion of large infrastructure projects in time and stressed that the government must announce further measures to boost business confidence that is essential for reviving growth. They also emphasised the need to reduce repo rate by 0.5 per cent and CRR to spur industrial growth.

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Reader's Comments (1)| Post a Comment

A stupid move.

Kailash | 16-Jan-2013Reply | Forward

Which rich is a big question? Those out of the IT scan or able to evade IT scan, cannot get affected by this move anyway. All those hard earned rich people with white money and are honest to nation will get screwd. Get the black money holders who looted tax money, who thugged many in the name of business, who bribed and converted white to black get into the controls of IT Dept. First control the defaulters and the dons of the informal sectors leeching the poor, and thn think of taxing the rich. Or less, they all will invest outside and derail the economy. Already FITCH has dowgraded Indian retail for FDI, Infrastructure is open and still down. What needs higher treatment is ethical behaviour of govt. reduction of corruption and care for common man. Any shortcuts by dumb economists will lead further worsening the situation.