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What happens if the Covid tax on super-rich becomes a reality

What happens if the Covid tax on super-rich becomes a reality

Of late, there had been suggestions of imposing a one-time Covid-19 relief cess and/or a wealth tax on India's super rich population, as this segment is believed to have a higher obligation towards ensuring the larger public good. The government’s initial reaction was not supportive of this idea. However, one feels that eventually the possibility of the wealthier section of the society bearing a higher tax liability for a limited period of time cannot be ruled out against the current complicated macroeconomic backdrop.

Covid-19 has heavily impacted the government’s revenue streams apart from putting a major strain on its expenditure in order to support the economy. This is surely prompting the fiscal authorities to explore various conventional and unconventional measures to boost fiscal health, and the government’s ability to keep supporting the needy.

 

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