Tax the rich

New Delhi: Raising income tax rate to 40 per cent for those who earn over Rs 1 crore a year, re-introduction of wealth tax, effecting a one-time Covid-19 cess of 4 per cent on taxable income of over Rs 10 lakh, direct cash transfer of up to Rs 5,000 a month for the poor, a three-year tax holiday for all corporates and businesses in the healthcare sector — these are some of the recommendations made by over 50 officers of the IRS to help the economy recover from the lockdown.

The recommendations are part of a policy paper titled "Fiscal Options & Response to Covid-19 Epidemic (FORCE), which the IRS Association presented to the PMO and the Union Finance Ministry on Saturday, sources in the organisation said on Sunday.

It has also been sent to the Central Board of Direct Taxes (CBDT), the sources added. The paper delves into several steps, the officers think, are needed to revive the economy, by raising additional revenue without burdening the common man.

"The government needs to spend considerably more to revive the economy and it needs to raise additional revenue, but in ways that must not burden the already distressed common man," the paper says.

"In times like these, the so-called 'super-rich' have a higher obligation towards ensuring the larger public good," it adds.