Former Bharatiya Janata Party president Nitin Gadkari, who is in-charge of preparing the party's vision document 'India Vision 2025', said that the party was presently deliberating the matter.
"We were talking about tax and although we have not decided as yet but a good presentation came before us. There is a suggestion of complete abolition of Income, Sales and Excise tax," he said, addressing a function on political agenda of political parties.
He said that the total revenue of the country is Rs 14 lakh crore and 1.5 lakh bank branches are operating in the country presently.
"If we abolish these taxes and if we apply around 1 or 1.5 per cent of expenditure or transaction tax, then we will get revenue to the tune of around Rs 40,000 lakh crore. So those 3.5 lakh people who are using beacons of various colours now, they will not be required anymore as no tribunals or commissioners will be required," he said.
"So I think along with transparency, there should be time bound result oriented administration coupled with right way of economic reforms and if it so happens, then the 1.5 lakh banks operating now will become 10 lakhs. There is another suggestion of doing away with Rs 500 and Rs 1000 notes... we are deliberating on these proposals as we want transparency..." Gadkari said.
He said that he has interacted with 400-450 people already and the document is expected to come out in a month's time.
Echoing Gadkari's thoughts, senior Bharatiya Janata Party leader Subramanian Swamy said that there was no shortage of resources in the country and "if one had auctioned the natural recources properly, one did not have to have income tax at all."
Giving details, Swamy said if the government had auctioned 2G spectrum, one would have got at least 1.76 lakh crore as extra which went to private hands.
He maintained if the government had auctioned the coal blocks, it would have got Rs 11 lakh crore and by auctioning the oil sites, Rs 24 lakh crore could have been realised.
"Illegal money lying in foreign banks mostly stashed by politicians is Rs 120 lakh crore. And what is the total income tax bill...just Rs 2.5 lakh crore. Why should we pay income tax? I urge Nitin Gadkari that we should abolish income tax," he questioned.
"Do you think if you abolish income tax, the middle class will squander their money? No they will put it in banks and will be available for investment. It is the same with corporate income tax...You can abolish it.," Swamy added.