Thread by @c_aashish

There's been a lot of talk about FORCE- Fiscal Options and Response to Covid-19 Epidemic, a document IRS association has written for the govt to manage economic conditions.

Lot of comments on the direct tax "ideas", which are troublesome. But there's some good points too. (1/n)

These are short summaries of ideas - the document is not publicly available, so details can be checked directly.

* Delayed TDS payments for some sectors
* Advance tax payments to be backloaded
* Tax holiday / breaks for healthcare
* 50% households get basic income for 6m (2/n)

* Wage support for MSMEs based on UK model (this is already delayed IMO!)
* Less corporate tax for companies suffering revenue loss
* More tax breaks for property purchases
* Tax relief for those who lose jobs
* "Google tax" which is inevitable globally (3/n)

Some of these ideas are quite useful and required. Will need fleshing out specific details.

The problematic part is how to fund this government intervention. That's where Covid cess over 10L, wealth, inheritance tax, 40% marginal rate etc come in. (4/n)

The language around tax proposals is especially troublesome - some of it sounds like reading an aggressive Bernie Sanders speech.

How and why did this document come out is a classic Delhi intrigue. Trial balloon or embarrassment? Leak or feedback? Only insiders will know! (5/n)

India certainly needs all the FORCE to deal with the impending economic slowdown locally and globally. The best FORCE will be to build trust with the taxpayers.

Not the time for FO-ing the 'Rich Criminal Entrepreneurs'.

With inputs from @vk80 and @kshetragnya (n/n).