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When the tax bosses got uptight

The FORCE report suggests hiking taxes to raise additional revenue needed by the government at the present juncture when social obligations have multiplied because of the fallout of the coronavirus pandemic.

April 29, 2020 / 10:01 IST
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Subir Roy

There is an element of the absurd in the central board of direct taxes issuing charge sheets to three senior Indian Revenue Service officials with around three decades of experience. Their transgression is the role they played in a report prepared by 50 junior officers of the department getting into the public domain. What makes things more serious is the three officials, two of whom are office bearers of  the IRS Association, being relieved of their current responsibilities.

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The report entitled FORCE, acronym standing for ‘Fiscal Options & Response to the Covid19 Epidemic’ (the present dispensation loves acronyms), suggests hiking taxes to raise additional revenue needed by the government at the present juncture when social obligations have multiplied because of the fallout of the coronavirus pandemic.

The specific proposals are to raise the income tax rate to 40 per cent for those earning over Rs one crore in a year, reintroducing wealth tax for those with net wealth of over Rs five crore, a one time 4 per cent COVID-19 relief cess on taxable income of over Rs 10 lakh and, very interestingly, a three year tax holiday for all businesses in the healthcare sector. The report estimated that the one time cess could mobilize over Rs 15,000 crore which could be spent on capital expenditure for relief works.

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