Income Tax Abolishment: Is It a Prudent Step?
Taxes are what Indians or any citizen in the world don’t like. It means giving the Government with a portion of your hard-earned money. Every year, so many people hate the concept of filing the Income Tax Returns (ITRs). Thus, what if we told you that in India, a debate is going on for the abolishment of the income tax?
Won’t that come as a fresh breeze of air hitting your face and help you rejuvenate? Yes, it would! A leading and senior ruling party Member of Parliament, Dr Subramaniam Swamy is making inroads. He is pitching at multiple platforms to abolish the income tax.
There’s Pitching for Income Tax Abolishment
He is of the opinion that domestic savings and not foreign investment can help the Indian economy on a 10% growth path. To achieve it, the first thing that the Government needs to do is abolish the income tax. The next thing should be the raising up of the fixed deposits interest rates to at least 9%. There should also be a reduction in the bank’s Prime Lending Rates (PLR).
The pitch for abolishing income tax was recently made by the senior BJP leader and MP Dr Subramaniam Swamy at ASSOCHAM.
He also focused that the only way to bring back the economy on the track of progress and on the double-digit progress is by to cast off income taxes.
Also, the implementation of measures taken to pace savings should be another thing to support it.
According to his views and expertise in the economic field, he said that once the income tax gets abolished, people would celebrate. However, it would not be majorly for being able to save money.
They will rejoice because they are not fed with ITR processes but fed up with the income tax inspectors.
What’s more, there is no denying the fact that these income tax inspectors have become a sharp weapon to oppress political opponents. They are being used by multiple people in authority to harass someone or take out revenge.
But, what would be the alternatives to the income tax revenues for the Government if it plans to abolish it?
Dr Swamy also had a solution to this question at the event. He advised that income tax alternatives could be found in multiple avenues.
These are platforms such as spectrum auctions and coal blocks. Everyone knows that these sources are one of the biggest revenue grosser for the exchequer.
Is Abolishing the Income Tax a Smart Idea?
However, despite all concerns for abolishing the income tax, is it a smart thing? Is it right for the Government to cast off the personal income tax system in India? In practicality, there are not so many buyers of these efforts and points expressed by Mr Swamy.
Yes, many industry watchers and economic experts feel that abolishing the income tax would not be done.
It is because the Government uses the collected income tax money to invest in multiple welfare programs. These programs are meant for downtrodden and lower sections of the society.
The Government also utilizes the money for allocating funds. It is done for education, infrastructure and agricultural sectors. Thus, if it’s abolished, India does not have any indirect alternatives to support all these discussed projects and initiatives.
The experts also feel that the abolishment of the income taxes will also widen the gap between rich and poor. It will also lead to economic disparity even more. It’s because rich always find a way to evade taxes, anyways.
Even though abolishing tax does not a possibility as of now, if some alternative measures could be taken, it must be given a try for sure.
If you are ready to know your taxable income tax, you can also take the help of an income tax calculator to help you know more.