Business & Finance

Modi Govt Junks IRS Officers’ Report Suggesting Tax On Super Rich

In a statement, the CBDT said that the ‘impugned’ report does not represent the official views of the finance ministry or the income tax dept.

New Delhi| A group of top IRS officers had recommended a super-rich tax and a higher duty on foreign companies to keep the cash till flowing as part of short term measures to help the government fight the COVID-19 pandemic.

The paper has been prepared by a group of top 50 Indian Revenue Service officers.

The suggestions are part of a paper titled ‘FORCE’ which is proposed by the Indian Revenue Service (IRS) Association to CBDT Chairman P C Mody.

The IRS group has also advised that the ultra-rich be taxed through two alternative ways which can be imposed for a limited time.

First is to raise the highest slab rate to 40% for total income levels above a minimum threshold of Rs. 1 crore from current 30% and two re-introduction of the wealth tax for those with a net wealth of Rs. 5 crores or more.

The Modi government Sunday sought to distance itself from the recommendation. The Central Board of Direct Taxes (CBDT) in a statement issued Sunday said that the “impugned” report does not represent the official views of the finance ministry or the income tax department.

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On Sunday, the Centre said the report of 50 IRS officers of the I-T department on revenue mobilisation and economic impetus to fight novel coronavirus pandemic is ill-conceived, and an act of indiscipline, as well as a violation of service conduct rules.

“The conduct rules specifically prohibits officers to go to media with their personal views on official matters without taking prior assent or the approval of the government. The concerned officers will have to explain their misconduct,” one of the sources said.

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