There were many news after demonetization in india about abolishing personal income tax and enrolling a cashless economy in the country. Is there any updates currently on abolition of direct tax?
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5 Answers
Modi or Bjp has an idea into complete direct tax reformation within two years. But they have to face an election within one year. So nothing can be expected soon because without a majority in Rajya Sabha or only with a majority in Lok Sabha they can't take any constitutional changes or such big moves like the abolition of taxes. But if they try, maybe the opposition also support tax abolition because the election is nearby on its way. Like Subramanian Swamy, the former finance minister said people will dance on streets if income tax is abolished. That will give them a big edge on the election. So it's up to the election strategy of bjp whether taxes will be abolished or not.
People can say anything, however the reality is that, Tax cannot be undone, government cannot work without money and tax is the only way to gain money, to have working economy. If Income tax is abolished, then Corporate Tax will bear the burn of all the losses of Income Tax. However there is possibility to raise the tax level of Income tax and give big relief to middle income people.
BJP nor Modi are going to remove the Income Tax system. Its a huge move to make. Its a huge income source for the government as well. Moreover, the new budget 2020 got out under BJP government in which severe changes have been made which can be seen https://learn.quicko.com/budget-2020-highlights
nothing can be expected soon because without a majority in Rajya Sabha or only with a majority in Lok Sabha they can't take any constitutional changes or such big moves like the abolition of taxes. But if they try, maybe the opposition also support tax abolition because the election is nearby on its way