Left wants 5 pc wealth tax on Rs 50 cr and above

New Delhi: Left parties have suggested that wealth tax be levied in the range of 1-5 per cent, instead of a flat 1 per cent at present. The suggestion figures in the dissent note, submitted along with the Standing Committee report on DTC by CPM Member of Parliament Moinul Hassan. The report also contains a dissent note by CPI MP Gurudas Dasgupta.

Hassan has suggested that Wealth Tax should be levied at different rates on specified assets - 1 per cent on assets valued between Rs 5-20 crore, 3 per cent for Rs 20-50 crore and 5 per cent for Rs 50 crore and above.

Wealth Tax is now levied at 1 per cent on specified assets, mostly unproductive, worth over Rs 30 lakh.

Wealth Tax is now levied at 1 per cent on specified assets, mostly unproductive, worth over Rs 30 lakh.

The Direct Taxes Code (DTC) Bill has proposed a hike in this limit to Rs 1 crore, while the Standing Committee wants it to be pegged at Rs 5 crore.

While the number of dollar billionaires in India, as per the Forbes list, has gone up from 13 in 2003 to 55 in 2011, the annual wealth tax collection is only to the tune of Rs 500-600 crore, the dissent note said.

Pointing out that there are only 2.8 crore income tax payers in a country of over 120 crore people, it made a case for widening the tax net by taxing the rural rich.

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