Tax Proposals Could Drive India’s Wealthy Abroad: Expert Gautam Sen warns

Tax Proposals Could Drive India's Wealthy Abroad: Expert Gautam Sen warns/ANI

VoM News Desk | May 8, 2024 | 10:37 AM IST | India | Follow on Google News

Tax Proposals Could Drive India’s Wealthy Abroad: Expert Gautam Sen warns

Tax Proposals Could Drive India’s Wealthy Abroad: Expert Gautam Sen warns

Key Highlights:

1. Economist Gautam Sen warns Congress’s wealth tax could prompt wealthy individuals like Ambanis and Adanis to move to tax havens like Dubai.
2. Sen questions feasibility of proposed inheritance tax, citing Sweden’s experience and challenges in redistributing wealth in India.
3. He cautions against radical tax measures, fearing social upheaval and military vulnerability to foreign powers.

Political economist Gautam Sen has cautioned against Congress’s proposal to impose a wealth tax in India, warning that it could prompt the country’s super-rich, including the Ambanis and Adanis, to relocate to tax havens like Dubai. In an exclusive interview with ANI, Sen emphasized that implementing an inheritance tax in India would be impractical and could lead to significant wealth loss for the country.

Sen drew parallels with Sweden’s decision to abolish its inheritance tax, which resulted in increased economic growth and wealth retention. He expressed skepticism about Congress leader Sam Pitroda’s suggestion to adopt a US-style inheritance tax, arguing that it is not a suitable analogy for India. Sen highlighted the challenges of redistributing wealth in India, where only a small percentage of people pay personal income tax.

Furthermore, Sen cautioned against the feasibility of tax inspectors surveying every household and business, stating that it would be impractical. He praised the current government’s efforts to improve the welfare of the poor through infrastructure development and healthcare initiatives. Sen urged for stability and continuity in government policy to sustain India’s economic growth and prosperity in the long term, expressing confidence in the country’s economic prospects with sensible governance in place.

Source: ANI

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