In a policy paper-cum- recommendation titled Fiscal Options and Response to COVID-19 Epidemic (FORCE)" presented to the PMO and Finace Ministry, the IRS officers have said that the Government needs to spend considerably more to revive the economy; and b) it needs to raise additional revenue, but in ways that must not burden the already distressed common man.
The Indian Revenue Service Association (IRSA) has suggested the imposition of wealth tax on the super rich, with net wealth at least Rs 5 crore and a one-time COVID relief cess of 4 per cent.
The tax officers' body said they can be taxed through two alternative means, for a limited, fixed period -- 3-6 months. It noted that the super rich enjoy a higher capacity to pay with significantly higher levels of disposable incomes compared with the rest. Also, they have a higher stake in ensuring the economy springs back into action, and their current levels of wealth itself is a product of the social contract between the state and its citizens.
It suggested raising the highest slab rate to 40 per cent for total income levels above a minimum threshold of Rs 1 crore or re-introduction of the wealth tax for those with net wealth of Rs 5 crores or more.
Well, their suggestion does not seem to go well with Twitterati. Here's what they had to say;