Bharatiya Janata Party MP, Subramanian Swamy on Friday pitched for abolition of Income Tax to ease the burden on the middle class and promote higher economic growth in the country.
He said it is essentially the middle class and young generation of startup entrepreneurs who suffer because of income tax, which amounts to “harassment” for them.
“So, who is paying (income tax) in India? a very small fraction. So, why should you impose this burden on this small fraction,” Mr. Swamy asked.
Abolition of Income Tax would result in higher savings which in turn lead to increase in investment, he said.
“Therefore, abolishing it means, the rate of savings should go up. The rate of savings goes up, investment goes up and therefore growth goes up. Therefore, indirect taxes will give you more than you lose by abolishing it,” Mr. Swamy told reporters.
He was speaking on the sidelines of a talk he delivered on ‘Future of India in the Emerging World’ at the 8th IEIA (Indian Exhibition Industry Association) Open Seminarthe Annual Conclave of the Indian Exhibition Industry.
'Coal, spectrum auction can compensate revenue loss'
On the loss of revenue due to the abolition of Income Tax, he said resources can be raised by auctioning natural resources like coal blocks and spectrum.
“That’s why I said you auction 2G, 3G, 4G, 5G, you got a long line waiting for you. You can auction coal blocks.
All natural resources of government should be auctioned...there are ways of raising resources. These are all set methods,” he said.
In his speech, Mr. Swamy said the country should grow at 10 per cent for 10 years to address problem of unemployment and poverty.
“But, if you want to solve the problem of poverty and unemployment, we need a 10 per cent growth rate for 10 years.
It’s feasible. It’s achievable,” he said.
Mr. Swamy stressed the importance of innovation and a change in the mindset of youth, saying they should think in terms of taking risks instead of seeking stability in their careers.
