New Delhi: India Inc said on Wednesday that there should not be any increase in taxes for the "super rich" as it would dampen business sentiments and lead to relocation of professionals to low tax regions like Singapore, Dubai and London.
"A higher rate of tax on high income group taxpayers is uncalled for as this would discourage entrepreneurship. It could lead to professionals relocating to low tax domiciles such as Singapore, Dubai or London," said Naina Lal Kidwai, president, Federation of Indian Chambers of Commerce and Industry (FICCI) said at a meeting with Finance Minister P Chidambaram in New Delhi.
"Moreover, it is not the time to further damage the confidence of the investor community which has already been shaken badly on account of last year's tax amendments. The Government should not fuel the black economy by increasing tax rates," Kidwai said in the pre-budget consultation meeting.
In his presentation at the meeting, Adi Godrej, president, Confederation of Indian Industry (CII) strongly opposed any such move increase taxes for "super rich."
Responding to the rumours of new taxes like "inheritance tax", etc, Godrej has strongly advised against any such new taxes, which would dampen sentiments and not contribute significantly to the exchequer, CII said in a statement after the meeting.
In pre-budget consultation economists recently advised the government to levy higher taxes on super-rich.