InvestorQ : Is it true that the higher tax rate would be increased to 40% to bring the economy back to normal? How smart that move of the government is?
Radhika Arya made post

Is it true that the higher tax rate would be increased to 40% to bring the economy back to normal? How smart that move of the government is?

Answer
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sara Kunju answered.
4 months ago


Well, there was a suggestion by a group of Indian Revenue Services (IRS) to increase the higher tax rate levied on the super-rich along with a 4% COVID-19 relief cess, this was suggested with a view to rebuild the nation’s economy, which is getting deteriorated due to the coronavirus pandemic.

However, this suggestion was rejected by the Indian government. The facts state that the suggestions were made through a report titled ‘Fiscal Options & Response to Covid-19 Epidemic (FORCE)’ and a report was released on the twitter handle and website of the IRS. The government assumed it to be an irresponsible act by the officers of the IRS. The government officials also stated that a departmental inquiry shall also be stated against people who are responsible for creating panic by uploading the unauthorized report, it could have brought serious impact on the economy as well as the market.

The government considered the said proposal to be against the government’s existing policy on taxation and hence cannot be implemented at any cost. Therefore, there’s no need to worry about the higher tax rate levy, as it was just wrong and unapproved information leaked from the department.

The government is inviting suggestions from experts to cope with the economic slowdown and hence there are chances that some or other moves shall be taken by the government soon after the pandemic ends.