Rajnath Singh bats for tax based on transaction, not income

Toeing the view of his predecessor, BJP President Rajnath Singh today said the party will take a view on a demand for removal of all taxes and replacing them with a single transaction levy.
Former BJP chief Nitin Gadkari earlier this month favoured complete abolition of Income, Sales and Excise tax.
Addressing a conclave of realtors' body CREDAI, Singh said 7-8 taxes are imposed on even an unemployed person.
"We have received a suggestion to abolish all taxes and impose transaction tax. We are considering this suggestion. But do not conclude that we have taken any decision on it," Singh said.

The suggestion is also to have tax on money transaction through banks, he said, adding that BJP is consulting finance experts who have worked in the government at central and states level on this suggestion.
Earlier this month, Gadkari had said: "If we abolish these taxes and if we apply around 1 or 1.5 per cent of expenditure or transaction tax, then we will get revenue to the tune of around Rs 40,000 lakh crore."

In the party vision document which is being prepared, Singh said BJP would not only state that it would curb inflation, generate employment and alleviate poverty, but also outline how to do it and in how much time.

The vision document would spell out how to rationalise taxes, he added.
Singh also spoke about the fiscal and current account deficits, lower GDP growth, rupee depreciation and rising external debt.
He felt that there is a need for comprehensive thinking to deal with these problems.
Singh said the employment generation during 1998-2004 was 6.70 crore while the same is mere 27 lakh during 2004-09.
Singh said the BJP would make all efforts to boost housing sector, if it comes to power. He assured developers that BJP would seriously consider realty industry's demand to get infrastructure and industry status. "I am personally convinced with this demand," he said.

Singh asked CREDAI to send its wishlist so that BJP could include the same in the party's election manifesto.