Tax collection in India is very high, income tax should be reduced from 40 to 25 percent: Surjit Bhalla
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He told PTI that it is necessary to reduce the tax rate to accelerate the pace of economic growth. We are a very globalized economy in the world, Bhalla said. If you look at the tax structure in India, the collection of taxes is quite high even though we are not the richest economy in the world.
India is not the richest country in the world, but the tax collection here is very high and the income tax rate should be reduced to 25 percent from the current around 40 percent. Renowned economist Surjit Bhalla said this. He told PTI that it is necessary to reduce the tax rate to accelerate the pace of economic growth. We are a very globalized economy in the world, Bhalla said. If you look at the tax structure in India, the collection of taxes is quite high even though we are not the richest economy in the world.
He said that the tax collection of the state, central and local bodies is about 19 per cent of India’s GDP. He further said, we should move towards reducing it by two per cent. As far as direct taxes are concerned, I think the total tax rate should not exceed 25 per cent. Now it is around 40 including surcharge. Our corporate tax rate is 25 percent, that should be our income tax rate. At present, the maximum rate of income tax in India is 39 percent. Bhalla said that instead of benefiting a select section of the society, taxes needed to be reduced for all. India’s gross direct tax collection to grow by over 20 per cent to Rs 19.68 lakh crore during FY 2022-23.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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