P Chidambaram on the footsteps of Obama: Rich must be taxed more

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Rich must be taxed more: P Chidambaram
Recently, US President, Barack Obama came out with the tax plan against rich people in America, where rich would be liable to pay more taxes. To be in line with Obama, Home Minister and former Finance Minister of India, P Chidambaram also suggested that rich must be taxed more, though the idea was not in compliance with many people, PTI reported.

While addressing a function of All India Management Association, P Chidambram said,“We must raise the tax revenue to defend (the expected aggregate decline of resources). I know many people won’t like this. But I think, I can summon the courage to make the statement.”

During his supremacy under Finance Ministry i.e. between May 2004 and November 2008, he came out with 'dream budget', where he also slashed the taxes. Stating the same, he added, "It was me as the Finance Minister who slashed your tax rates. Therefore you must be prepared to pay higher tax rates, especially the rich must be prepared to pay higher tax."

Home Minister also mentioned that according to the Approach Paper (12th Plan), tax revenue is expected to rise from 7.4% in the current year to 8.9% next year and the non-tax revenue is expected to decline. And, aggregate resources, that include tax revenue, non-tax revenue, non-debt capital revenue and borrowings, are expected to decline from 14% in the current year (2011-12) to 13.11% as a percentage of GDP.

Raising concerns he said, "Certainly this is not the place, nor I am the person to say what tax should be raised. But we should seriously consider how to raise the tax revenue of the country."

(Inputs from PTI) 

Read more about: tax, p chidambaram, obama
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