Zero tax on long-term gains and dividends was a disastrous tax policy. The objective of taxation should be to have the tax base be as wide as possible. Exempting entire sections from paying taxes only causes those who are paying taxes to cough up at even higher rates.
https://twitter.com/dmuthuk/status/1488470467539202048
Not just that, zero taxes on listed equities - vast majority of which is secondary market purchase, not in primary issue - is a clear disincentive for financial participation in private equity, which comparatively was very heavily taxed. Private equity actually funds businesses.
This clamour around Budget time from every segment for reduction in taxes is frankly disgusting. Direct taxes in India still need a lot of rationalization and reforms. Argue for system-wide changes that make everyone better off, instead of trying to grab your own benefit.
For instance, why have we all simply accepted that agriculture income cannot be taxed, even for rich farmers.
India cannot build a modern State without a wider tax base, with more people paying taxes. The current tax regime is unsustainable.
India cannot build a modern State without a wider tax base, with more people paying taxes. The current tax regime is unsustainable.
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