Tax forgone is not a loss of revenue

For promoting export, small-scale industry, education, health care and giving subsidies for the poor and the middle class in transport, exemptions are necessary

Image
Premium

Sukumar Mukhopadhyay
I have chosen this subject for writing mainly because a political party is now trying to misguide the public by mentioning in its manifesto that the central government between 2009 and 2013 had forgone Rs 21 trillion of central government tax revenue as tax concessions, which was a plunder by big business houses. I wish to clarify to the readers that this whole concept that tax concessions are not a loss, nor plunder. The economic significance of tax concessions has to be understood with the mind of an economist, and not that of a propagandist.  

Tax exemptions are of several types.
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: May 05 2019 | 10:46 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com