In the budget can be announced for reinstatement of inheritance tax. This tax seems to be on ancestral property. It was finished 35 years ago in 1985. The Government can fix the limit of cash withdrawal from the bank in a financial year and it may announce tax on more withdrawal. Analysts have different opinions about inheritance tax. A large group says that implementing it will harm the economy. But, it is said that the government can declare it as a bold and inclusive step.
T Haque, chairman of NITI Aayog’s Expert Committee on Land Issues, said that 1 per cent people control 58 per cent of the wealth in the country.
“An inheritance tax should be imposed on such people. There is a need to improve the tax-GDP ratio in the economy and inheritance tax will help in lowering the social inequality,” he added.
While the government has time and again favoured lower tax rates for the middle class, a moderate tax on the super rich might be a good way to increase the resources for the government, say experts.
One tax that analysts expect to make a comeback is the inheritance or estate tax, which was abolished in 1985.