Asserting that the income tax amounts to "harassment", BJP leader Subramanian Swamy has yet again called for its abolishment.
Swamy has been vocal about his views on income tax for many years now. At an ASSOCHAM function in january this year, Swamy had said domestic savings and not foreign investment can take Indian economy on a 10 per cent growth path, for which Income Tax must be abolished and interest rates on Fixed Deposits be raised to nine per cent along with the reduction in the banks' Prime Lending Rates (PLR).
On Friday (May 11), Swamy asked, "Who is paying income tax in India? a very small fraction. So, why should you impose this burden on this small fraction?"
"Therefore, abolishing it means, the rate of savings should go up. The rate of savings goes up, investment goes up and therefore growth goes up. Therefore, indirect taxes will give you more than you lose by abolishing it," Swamy told reporters.
In 2016, Swamy had said increase in the savings rate will provide resources for growth and the Rs 2 trillion which will have to be foregone (if the income tax is abolished) will get more than compensated.
"If I am in the Government, I will do it within one week, if I am not in Government, I will do it (remove income tax) within three years. The only way to encourage people to save more today is by abolishing the income tax completely," Swamy had then said.
OneIndia News with PTI inputs