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Subramanian Swamy: Abolish income tax to push growth

Subramanian Swamy claimed that Rs 120 trillion or 60 times the revenues from tax collection is stashed in tax havens abroad which needs to be brought back.

By: PTI | Mumbai | Published: June 16, 2016 10:02 pm
BJP, Subramanian Swamy, Income Tax abolition, Modi, Income Tax, nationalisation of funds, black money, tax havens, Prime Minister Narendra Modi, Narendra Modi, national savings rate, Annual Conference of Tax Administrators 2016, Arun Jaitley, Finance Minister Arun Jaitley, India news, national news, latest news Subramanian Swamy wishes for Income Tax to be abolished so as to increase savings rate. (Express photo)

BJP leader Subramanian Swamy on Thursday pitched for abolition of Income Tax to increase savings rate and help economic growth, and also suggested nationalisation of funds stashed in tax havens to retrieve the black money.

Finance Minister Arun Jaitley did not use this method because he, being a lawyer, was “sensitive” to the rights of those who have kept black money abroad, Swamy said at an event here.

“If I am in the Government, I will do it within one week, if I am not in Government, I will do it (remove income tax) within three years. The only way to encourage people to save more today is by abolishing the income tax completely,” Swamy said.

While Prime Minister Narendra Modi exhorted the tax authorities to double the tax base to 10 crore earlier in the day, Swamy said here the national savings rate has dipped to 33 per cent and needs to be pushed up to at least 40 per cent.

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Increase in the savings rate will provide resources for growth and the Rs 2 trillion which will have to be foregone (if the income tax is abolished) will get more than compensated, Swamy said, stressing that the country needs to push the growth up to 10 per cent per annum for at least a decade for eradicating poverty and unemployment.

The leader claimed that Rs 120 trillion or 60 times the revenues from tax collection is stashed in tax havens abroad which needs to be brought back.

Citing his conversation with Modi, he said the Prime Minister has “preferred” adoption of a UN-approved method of recovering the black money by nationalisation of such funds.

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“If any country passes a law…that the citizens of their country holding accounts in the banks of these 70 countries (practising secret banking), their bank account is hereby nationalised,” he said.

Stating that countries like Egypt, the Philippines and Libya have used this method, Swamy said Modi has asked him to prepare a note on the same.

“I am hoping that the note that I will be giving to the PM in a few days will translate itself into a law, into a legislation and then we can hope we will get all these countries to give the money,” he said.

“Why didn’t we do this all this while? Because Jaitley is a lawyer and he was little sensitive to the rights of those who have accounts there. But now the PM says this is an important issue and we have to do something about it,” he said.

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  1. K
    Kaustubh
    Jan 30, 2017 at 7:35 pm
    If Income Tax will be abolished from India it will have amazing benefits to Indian Economy! lt;br/gt;Please check this articlelt;br/gt;
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      Rameswar Pattanayak
      Jun 17, 2016 at 1:52 am
      In India some people only pay and some other only get. This disparity need to be looked at. There are too many tax payers who have paid taxes for decades while serving as employees. There are many among them who could not afford to buy or build a house. Some among them also felt the uselessness of house bought/built with investment of more than 50% of life earning by their offspring. Why cannot Govt. go after a scheme of providing 800-1000 sft 2BHK apartments to such senior citizens on rent for life time with clauses like no subletting, no inheritance and the option of shifting from city to city. At least they deserve some thing in return.
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        vinay
        Jun 16, 2016 at 5:03 pm
        swamy offered similar lollipops to his legions of Dumbhakts before the 2014 elections . and those NaMoRONS fell for it hook , line and sinker.lt;br/gt;lt;br/gt;modi and his Govt do not even have the courage to privatize Public Sector enterprises ! forget about abolishing income tax. How many State PSU's did modi privatize during his tenure as Gujarat CM ?
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          R.Mehta
          Jun 17, 2016 at 3:15 am
          Instead of total abolition of income tax the govt should spare the lower and middle income group from paying income tax and target those having income of more than Rz 50 Lacs and above per annum.and charge them income tax at higher rates and if all the individuals ,business man companies are made to pay income tax at higher rates ,the amount of income tax abolished for lower and middle income group will be covered and there will not be any los / decrease in revenue for the govt. and disposal income in the hands of lower and middle income group will be increased ,resulting in incresd s in all sectors and to meet the demand productivity will increase. which will be benefiacial for the govt.
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          1. N
            Nagesh
            Jun 17, 2016 at 6:25 am
            dude...state government has nothing to do it IT...its a central government department and state has no play in it....
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