There is a demand arose by one of Dharamguru Mr. Ramdev to abolish income tax and insert some banking transaction tax for nap corruption and black money. BJP prime ministrial candidate Mr. Narender Bhai Modi gives support to his demand.
Some Experts say its desirable and possible too and some other say that this move may become against against social equity.
Describing the concept as "aspirational", Ficci President Sidharth Birla said: "If the steps proposed enhance revenue by broadening and broad basing the tax payer base and help improve transparency of regulatory framework, we will tend to welcome these aspects. ..
The proposal, Birla said, would involve hard arithmetic as the revenue losses would have to be recovered from other sources while stressing that India needs a stable, equitable and a friendly tax regime.
President of industry body PHDCCI Sharad Jaipuria said: "The personal income tax should be reduced or abolished with alternate sources. I believe, government has the potential to generate revenue from other sources which are unexplored yet".
While pointing out implementation of the tax proposal is within the realm of possibility, some experts also opined that it has the potential to deal with menace of blackmoney.
"...it may reduce corruption and collusion with the Government a .. agencies. It may remove the tax burden from individual as well as corporate taxpayers. The taxpayers will also not indulge into practices like falsification of accounts, money laundering and other illegal ways of tax evasion," said Girish Vanvari, Co-Head of Tax, KPMG in India.
He said, however, that a comprehensive and holistic analysis is required before going for such a drastic reform.
Another leading global tax consultant PwC India, however, expressed apprehensions sayin .. that abolition of income tax would be against the progressive system of revenue collection.