Direct Tax Collection: Renowned Economist Surjit Bhalla Suggests Reducing Income Tax Rate
Renowned economist Surjit Bhalla has suggested that India’s income tax rate should be reduced from the current around 40 percent to 25 percent. Bhalla stated that India is not the richest country in the world, but the tax collection here is very high. He believes that reducing the tax rate will speed up economic growth.
India’s Economy Highly Globalized
According to Bhalla, India is the most globalized economy in the world. Despite not being the richest economy, the tax collection of the state, central, and local bodies is about 19 percent of the country’s gross domestic product (GDP).
Suggestion to Increase Total Tax Rate to 25 Percent
Bhalla suggests moving towards reducing tax rate by 2 percent. He believes that the total tax rate should not be more than 25 percent. At present, the maximum rate of income tax in the country is 39 percent. Bhalla also emphasized that reducing taxes for all, rather than benefiting a select section of society, is necessary.
Increase in Gross Direct Tax Collection
During the financial year 2022-23, India’s gross direct tax collection increased by more than 20 percent to Rs 19.68 lakh crore. While taxpayers expected a reduction in the tax slab in the budget, Finance Minister Nirmala Sitharaman gave relief to the middle class by changing the new tax regime. If accepted, Bhalla’s suggestion could further benefit taxpayers in India.
Follow DelhiBreakings on Google News
Sorted points by DelhiBreakings.com team.
👉 Economist Surjit Bhalla suggests reducing India’s income tax rate from around 40% to 25%.
👉 Bhalla emphasizes the need to reduce tax rates to speed up economic growth.
👉 India’s tax collection is high despite not being the richest country in the world.
👉 Bhalla suggests reducing the total tax rate by 2% and capping direct taxes at 25%.
👉 Bhalla advocates reducing taxes for all instead of benefiting a select section of society.
👉 India’s gross direct tax collection increased by over 20% to Rs 19.68 lakh crore in FY 2022-23.
👉 The Finance Minister previously gave relief to the middle class by changing the new tax regime.
For Superfast national news and Delhi Breaking Stories visit us daily at https://delhibreakings.com
Something went wrong. Please refresh the page and/or try again.