New Delhi: Industry lobby Assocham Sunday said any higher taxes on the super rich will affect business sentiment in a time of economic slowdown. Backed by a corporate sector survey, the chamber said that instead of higher taxes for the rich, the government should focus more on high growth.
"The focus and public debate should shift from 'more tax on super rich' to 'super growth'," Associated Chambers of Commerce and Induastry (Assocham) said. The majority of companies surveyed said the government should emphasise on better tax administration, reduction in non-plan public expenditure and improvement in quality of governance.
"The industry expects Finance Minister P Chidambaram to give a growth-oriented Budget which would promote investment and revival of the economic sentiment," said Assocham president Rajkumar Dhoot. Of the survey respondents, who included 85 CEOs and senior executives, 61 percent said that higher taxes levied on the super rich would affect business sentiment as it would act as a disincentive on wealth and value creation.
The remaining companies were not averse to the tax on rich if it is a short-term levy in the form of a surcharge for one or two years at the most, said Assocham.