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Liberal taxation policy will fetch more revenue
February, 28th 2008

It is gratifying to note that the Finance Minister has thought of giving some relief to income-tax payers in the light of substantial tax collections during the past three years. It has been reported that the threshold limit is likely to be raised from the present Rs 1,10,000 to Rs 1,25,000 Rs 1,30,000. It would be fair if it is raised to Rs 2,00,000. Though the contemplated relief does not significantly offset the effects of inflationary spiral and is quite insign ificant in terms of the benefits, tax payers welcome it. Liberal taxation policy fetches more revenue to the Government than the hard taxation policy. With a liberal taxation policy in place, a large number of tax-evaders would volunteer to pay the tax. Further, the idea of enhancing income threshold for 30 per cent slab from the present Rs 2,50,000 is an added relief.

K.V. Seetharamaiah, Hassan

 
 
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