Taxmen propose taxing super-rich, Covid relief cess as steps to combat pandemic in policy paper

NEW DELHI: Raising the tax slab for super-rich and a Covid relief cess are among a raft of proposals that have been recommended in a policy paper prepared by 50 young tax officers which has been submitted to the Central Board of Direct Taxes (CBDT).

Titled as FORCE (Fiscal Options and Response to Covid-19 Epidemic), the policy paper hasa string of measures to raise revenues and provide relief to the economy battered by the pandemic.

Stating that in times like these, the so called “super rich” have a higher obligation towards ensuring the larger public good, the paper has recommended that this segment of the population can be taxed through two alternative means, both of which can be imposed for a limited, fixed period of time. It has backed raising the highest slab rate to 40% for total income levels above a minimum threshold of Rs. 1 crore or re-introduction of the wealth tax for those with net wealth of Rs. 5 crores or more.

“Administratively, the former will be simpler to implement. However, the revenue gain associated with both options should