[ad_1]
Former Finance Minister P Chidambaram said on Wednesday that governments should borrow to cover their deficits and not resort to imposing new or higher taxes amid the coronavirus crisis.
Chidambaram said the imposition of higher taxes should not be done at a time when economic activity in the country has “stopped”.
“New or higher taxes will further impoverish families. Governments must borrow to cover their deficits, not impose higher tax burdens when economic activity stops, ”Chidambaram tweeted on Wednesday.
He said that imposing new or higher taxes makes sense only when the economy is booming.
New or higher taxes will further impoverish families.
Governments must borrow to cover their deficits, not impose higher tax burdens when economic activity stops.
– P. Chidambaram (@PChidambaram_IN) May 6, 2020
“Tax burdens on the middle class and the poor are actually taxing the distress,” said the former finance minister.
“We have been asking for government cash transfers to the bottom half of individuals / families. Instead, governments are making a REVERSE TRANSFER of money from the people to the government! Cruel ”, he added.
Governments should GIVE money to people in times of trouble, not APPREACH and TAKE money from people.
– P. Chidambaram (@PChidambaram_IN) May 6, 2020
Earlier this week, the Kejriwal government announced an increase in the value-added tax (VAT) on gasoline and diesel to raise money to fight coronavirus disease. This decision had increased the price of gasoline by Rs 1.67 per liter to Rs 71.26 and diesel by Rs 7.10 to Rs 69.39.
The Center on Tuesday increased the excise tax on gasoline by Rs10 and diesel by Rs13 per liter to recover part of the loss of revenue suffered by the government due to the Covid-19 blockade. However, the change in the tax structure will not affect the retail price of gasoline and diesel due to increased excise duties.
In addition to this, some of the states, including Delhi, Andhra Pradesh, West Bengal, and Rajasthan, had announced an increase in the excise tax on liquor as alcohol stores raised the blinds after nearly 40 days closed on Monday. . Delhi raised the tax by 70%, Andhra by 75%, West Bengal by 30% and Rajasthan by 10%, all to raise funds to fight pandemics and manage state finances, governments said.
[ad_2]
