It was not long ago that Narendra Modi himself vouched for scrapping the Income tax altogether and explore other avenues of revenue generation in India. He was then campaigning for BJP in the general election and the year was 2014. Now, BJP’s strategy ally RSS is invoking similar argument to scale down tax and provide tax relief to bring back black money.
Insisting that a ‘changed mindset’ can only bring back black money from abroad, RSS said a kind of pardon amounting to 65% to be retained by the person who brings it back would serve the purpose and increase revenue generation for the country’s economy, which is facing the pressure of capital outflow faster than expected.
RSS leader Indresh Kumar said those who bring back the money should not labeled "dishonest and thieves" so that the move would receive volunteers. "Why would one prefer to be called dishonest and a thief? You should have said that any Indian having money abroad should bring it back and deposit 35 per cent of it with the government and he can keep the rest…
The government would have received lakhs of crores of rupees. And if this money turns white, it will also become taxable. So, your tax revenue would increase manifold. Such people should be declared as honest citizens of India," he said.
He said the current Income Tax slab is too high amounting to "slavery" for tax-payers and pitched for bringing it down. since the middle class, especially the salaried class pays tax promptly, perhaps BJP can score a point by brining it down.
Anyway, the indirect tax is multiplying with every budget and service tax at 15% is already burdening every citizen in the country. With the OROP agreed in principle, it remains to be seen how much increase will be the tax in next year’s budget.