Thinking about the present period of inequality in the nation, it’s time for India to reintroduce wealth taxation in the Union Budget 2020 and focus on redistribution of wealth, Nobel laureate Abhijit V Banerjee stated on Monday.
“Given that the quantity of inequality today, wealth tax is totally sensible and much more redistribution is needed,” he explained in the Tata Steel Kolkata Literary Meet.
India had passed the Wealth Tax Act, 1957 that was enforced on a person, a Hindu Undivided Family along with a Corporate thing on its own valuation, which had been repealed in April 2016.
But, Banerjee remained doubtful about the present government’s excitement to present it.
Responding to a query about his views on the Centre’s disinvestment drive, Banerjee said,”I’d really like to sell out the esteemed PSUs.”
The 58-year old economist stated that corporate tax reduction has not yielded the desired outcome and corporate India is sitting on a heap of money. Rather, he emphasized the necessity to refinance the banking industry and also provide a boost to the infrastructure section.
Banerjee, nevertheless, stated that refinancing the banking industry won’t yield outcomes in the not too distant future, instead will require some time.
Talking on government programs, he stated that the Centre has undertaken”quite expensive new strategies” such as Ayushmann Bharat which formerly”properly executed” will tackle some important welfare problems. Other approaches like Ujjwala and Swachh Bharat will also be”expensive” based on him.
Asked about his perspective on migration in light of their continuing protests about CAA and NRC, he stated that migration is best for the market as migrants put in their very best to compete with the local inhabitants.
He concluded that the migration is the consequence of civil wars because in the case of West Asia or an economic disaster seen in the case of Greece from where approximately 50,000-60,000 individuals migrated elsewhere.