Hyderabad: BJP MP Subramanian Swamy today pitched for abolition of Income Tax to ease the burden on the middle class and promote higher economic growth in the country.
He said it is essentially the middle class and young generation of startup entrepreneurs who suffer because of income tax, which amounts to βharassmentβ for them.
βSo, who is paying (income tax) in India? a very small fraction. So, why should you impose this burden on this small fraction,β Swamy asked.
Abolition of Income Tax would result in higher savings which in turn lead to increase in investment, he said.
βTherefore, abolishing it means, the rate of savings should go up. The rate of savings goes up, investment goes up and therefore growth goes up. Therefore, indirect taxes will give you more than you lose by abolishing it,β Swamy told reporters.
He was speaking on the sidelines of a talk he delivered on βFuture of India in the Emerging Worldβ at the 8th IEIA (Indian Exhibition Industry Association) Open Seminarthe Annual Conclave of the Indian Exhibition Industry.
On the loss of revenue due to the abolition of Income Tax, he said resources can be raised by auctioning natural resources like coal blocks and spectrum.
βThatβs why I said you auction 2G, 3G, 4G, 5G, you got a long line waiting for you. You can auction coal blocks.
All natural resources of government should be auctionedβ¦
there are ways of raising resources. These are all set methods,β he said.
In his speech, Swamy said the country should grow at 10 per cent for 10 years to address problem of unemployment and poverty.
βBut, if you want to solve the problem of poverty and unemployment, we need a 10 per cent growth rate for 10 years.
Itβs feasible. Itβs achievable,β he said.
Swamy stressed the importance of innovation and a change in the mindset of youth, saying they should think in terms of taking risks instead of seeking stability in their careers.
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