Would wealth tax be introduced in the budget??

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Would wealth tax be introduced in the budget??

Tax Revenue is negative in the current fiscal.

Indian Government is exploring the ways to boost revenue to spend more for shoring up the economy and so the million dollar question is whether wealth tax would be introduced in the budget?

 Wealth tax is direct tax which is collected on properties held. This is irrespective of the fact whether one is earning income out of it or not.

India had imposed wealth tax %1 of net wealth in excess of Rs 30 Lakhs until 2015. However it was removed and an additional surcharge was imposed on those earning more than a crore.

Globally, amongst the OECD countries, only 4 levied wealth tax in 2019 which incidentally jumped to 7 countries in 2020 during the pandemic.

Argentina approved the same last month and Chile and Peru have pushed for levying the same.

 More importantly, US and UK are mulling and debating whether to introduce the same!!

As per the Bloomberg Billionaires Index, the fortune of the world’s 500 richest jumped from 5.9 trillion $ in 2019 to 7.6 trillion $ in 2020. At the same time many across the world were finding it difficult to stay afloat and afford 2 meals.

Let us wait and watch Budget 2021 !!

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