Former Bharatiya Janata Party (
BJP) president
Nitin Gadkari’s take on taxes would be music to the ears of
India’s 35-million
income tax payees.
Gadkari said he was contemplating to
include a proposal to abolish income, sales and excise taxes in the vision
document of his party. “A Pune-based institute has done a study and has
recommended abolishing these taxes. I am thinking about this proposal,” he said.
Gadkari is heading the team that is preparing the
vision document for the
general election. Gadkari was addressing an interactive session with
industrialists, organised by the PHD Chambers of Commerce and Industry (PHDCCI).
He was accompanied by former commerce minister Subramanian Swamy. Swamy is the
convenor of the vision document committee.
According to reports, Swamy
had in the past suggested abolishing income tax. But then, he had qualified this
as his personal view.
Swamy had argued that abolishing income tax would
boost savings. Gadkari said instead of these three taxes, it was better to have
expenditure and transaction taxes.
He said if the latter were introduced
at a rate of 1-1.5 per cent, the country could expect a revenue of Rs 40,000
crore. Also, in this tax regime, there “will be no need for (tax) tribunals and
(tax) commissioners”.