Taxing super-rich not a good idea, says India Inc
Citing the slowdown in the country's GDP growth, FICCI cautioned in a pre-Budget meeting with finance minister P Chidambaram against damaging the confidence of the investor community, which has already been shaken badly on account of last year's amendments on retrospective tax.
“The government should not fuel the black economy by increasing tax rates,”said Naina Lal Kidwai, President, FICCI. Adi Godrej, President, CII, has said that the objective of the Union Budget should be to revive growth, given the current economic situation.
The maximum marginal tax rate of 30% on personal income should be made applicable for income above R20 lakh, as against the existing threshold of R10 lakh, FICCI said in its recommendations. CII President Adi Godrej said, "We have said that any increase in taxes (on rich) will create a negative perception on investment and therefore should be avoided. Lower rates of taxes have been known to give higher collection. Absolute collection should increase.”
Assocham President Rajkumar Dhoot said, "Nowhere in the world this happens. Our opinion is tax them (the rich) but tax them reasonably. The investments from the rich men also
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