look news india
Wealth Tax: The demand for wealth tax is once again rising amidst the ongoing Lok Sabha elections in the country. In view of the economic inequality i.e. the growing gap between the rich and the poor, there has been a demand for a separate tax on the rich for a long time. Now a study has again sparked this debate by advocating wealth tax on the rich in India.
Famous economist Thomas Piketty has also contributed to this research report titled 'Wealth tax package proposal to address extreme inequality in India'. The research paper recommends imposing a wealth tax of 2 percent on the rich. Along with this, the research also advocates a 33 percent inheritance tax.
A research paper has recommended imposing this tax
It has been recommended to impose wealth tax on the rich people whose assets are more than Rs 10 crore. According to the research, people whose total assets are Rs 1,000 crore or more than Rs 10 crore should be charged 2 percent wealth tax and 33 percent inheritance tax. This can help in reducing economic inequality. Along with this, the economy will also benefit a lot. As a result, the government can get a huge revenue of up to 2.73 percent of GDP.
This report has come out in the middle of the elections
This research paper recommending tax on the rich has been published at a time when the Lok Sabha elections are going on in the country. As part of the process that has been going on for the last one and a half months, the sixth phase of voting is being held today on Saturday. After this, the seventh and final phase of voting will be held on June 1. After this, the results of the Lok Sabha elections will be declared on June 4.
The burden will increase on only 0.4% of the country's population
In the research paper, economists say that if the proposed tax is imposed on people with a net worth of more than Rs 10 crore in India, then it will affect very few people. According to the report, 99.96 percent of people will not be affected by both the proposed taxes, because the percentage of people with assets worth more than Rs 10 crore is very low.
Economic inequality increased
Many reports and research papers have raised concerns about economic inequality in India. From 2014-15 to 2022-23, economic inequality in the country has increased rapidly and the wealth of the rich has increased. By 2022-23, only 1 percent of the richest people in the country will have more than 40 percent of the total wealth, while their share in the total income will be 22.6 percent. This is more than many countries including South Africa, Brazil, America.