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FINANCE MINISTRY DISCARDS THE PROPOSAL OF IRS OFFICERS TO INCREASE TAXES FOR THE SUPER RICH

The Indian Revenue Service(IRS) has released a report suggesting that a 40 per cent tax should be paid by the super-rich, in order to help tackle the global coronavirus pandemic. The finance ministry has opposed the report on the account of it being ill-conceived. The IRS also wanted the tax of foreign companies increased but this has also been rejected by the government on account of not reflecting official views.

The report was recommended by 50 officers of the IRS. The increase of tax is for people with a yearly income of above 10 million Rupees or those with a net worth of 50 million or more, in a report shared on Twitter. The income tax increment was rejected on Sunday. The paper containing the research was sent to the Central Board of direct taxes, a board under the department of revenue. Due to the pandemic, the lockdown in India has been extended to May 3. In the report, the officers said, “In times like this, the so-called ‘super Rich’ have a higher obligation towards ensuring the larger public good”.

Although the proposal was dismissed the officers also said that the rich could fall back to their wealth to cope with the shock caused by the pandemic. Sources report that it is not even part of the officer’s job to prepare such a report and that their actions are an act of indiscipline and violation of conduct rules.

The Central Board of Direct Taxes has said that it never asked or gave permission for the IRS to prepare such a report. In the report, the officers suggest that the highest slab rate should be increased to 40 per cent for income levels above a minimum threshold of R1 crone or reduce the wealth tax of those with a net worth of Rs5 crore. The revenue that will be generated by the proposal will be used for projects identified by the government. In India, 872 people have died from Covid-19 while 27,892 are the confirmed cases.

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