Union Finance Minister’s adviser Parthasarathi Shome on
Monday favoured lowering of corporate taxes saying it would lead to
higher growth and development.
“Lowering of corporate
taxes will result in higher job growth and is more development
oriented,” Mr. Shome said at an interaction organised by Bharat Chamber
of Commerce in Kolkata.
Mr. Shome said marginal rates
of taxation for high net worth individuals (HNIs) in India was not
steep as compared to countries like the UK and the USA. Persons having
an income of Rs. five crore, for instance were taxed at 30 per cent plus
a surcharge.
“This, according to me, is low by any
standards and should be raised to bring vertical equity in the taxation
structure in the country. In India, that can go higher and it is not
wise to slash top marginal rates. Some equity correction needs to be
done,” Mr. Shome said.
He also pointed out that some
MNCs were engaged in profit shifting leading to payout of lower
effective taxation. “This has become an anathema to most of the
governments and has become a major issue in international taxation.”
Mr.
Shome said the next meeting of Tax Administration Reforms Commission
would be held next in the city on February 20 and 21 to discuss various
issues. Such meetings have already been held in Mumbai, Bangalore and
Chennai.
Source : The Hindu
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