In fact, he would encourage more money being put in the pockets of tax payers that will lead to spending and collection of more indirect taxes.
"This widening of the tax base. What does it mean? I pay the same
indirect tax as my attendant. Our volume of consumption may be
different. So everybody is paying indirect taxes.
"And literally almost half your taxes are indirect taxes today. He pays
excise, he pays customs duty, he pays service tax. Now as far as income
tax is concerned, to bring those who evade tax is widening the tax net, I
am all for it," the minister said in an interaction with PTI
journalists at PTI headquarters.
He was replying to a question on whether his budget would look at widening the tax base to maximise revenue.
Jaitley, who will be presenting his first full fledged budget in
February, said that in his last budget he had increased the tax
exemption limit from Rs 2 lakh to Rs 2.5 lakh and would even raise it
further if he had more money.
"After all what are we talking about Rs 2.5 lakh today means, taking all
the deductions which we have given, somebody up to Rs 3.5-4 lakh does
not have to pay tax. So we have reached the situation broadly.
"One earning Rs 35,000-40,000 per month, if the person puts some money
for savings, (he) won't have to pay tax. But people falling in this
bracket say that they don't save anything with salary of Rs
35,000-40,000 (with) the present cost of living, the transport cost, the
fees of children and so on," Jaitley said.
Therefore, the minister said, he was against reducing the exemptions to
widen the tax net. "Then that's not my approach," he added.
"So I am quite willing, if I had my way and I had more money in my
pocket, I would like to expand. But today the revenue position is
challenging. Last time I gave several concessions, which were actually
beyond my means.
"But it's all fine to bring those who evade tax under the tax net. But
to bring this vulnerable section into the tax net, that can't be the
policy today. In fact if you put additional money in their pockets and
allow them to spend, then I collect correspondingly more indirect taxes
so I will rather encourage more economic activity."
On black money within the country, he said: "It is huge quantity and
more easily traceable. Because you go to real estate, you go to land,
you go to mining, you go to jewellery, you go to luxury goods, you will
find the domestic (black money). You go to educational institutions, you
will find it there. Therefore to trace out the buyers and the
recipients is also easy."
Source : TOI
