Economists on Tuesday asked the government to roll back the retrospective tax rules that had hurt India’s image as an investment destination, but asked for imposing an "inheritance tax" on wealth and assets above a certain threshold.
"Major suggestions include to do away with retrospective tax amendments, removal of all kind of cess and surcharges, removal of dividend distribution tax and introduction of inheritance tax above certain threshold limit as in case of many other capitalist countries," a finance ministry statement said after a meeting of economists with finance minister Arun Jaitley as part of the pre-budget consultation process.
Jaitley said that growth of the country has been below 5% in the recent years and "economic growth cannot be compromised at any cost."
The finance minister said that the government’s priority would be to restore the economic growth, curb inflation, follow the path of fiscal consolidation and to create an environment for higher employability.
"The investment cycle has been disturbed. Inflation continues to be rising with April figure at 8.9%," he said.
Economists who participated in the meeting include Surjit Bhalla, OXUS Research & Investments, Rohini Somanathan, Delhi School of Economics, Omkar Goswami, CERG Advisory, Nitin Desai, Ashima Goyal, IGIDR, Manoj Panda, Institute of Economic Growth among others.