Letter to BS: The surcharge is an illogical way of raising govt revenue

The government expects to get just Rs 2,724 crore from the surcharge levied

Dhiraj Nayyar in his article “Cake or taxes?” (July 18) argues for bringing down the total tax liability of the very rich and super-rich (earning more than Rs 2 crore) in India, from 39 per cent and 42.5 per cent to 30 per cent, on par with the corporate tax. I agree with the first part but not the latter. The surcharge, being a tax on tax, is an illogical way of raising government revenue and in respect of the richest has been going up every year beginning with 10 per cent in 2013. It is unethical also because it