Taxes on rich unlikely: Premji

  • PTI, Davos
  • |
  • Updated: Jan 24, 2013 21:41 IST

Amidst the debate on taxing the super rich, Wipro chairman Azim Premji on Wednesday said it is a "politically" correct thing to do, but expressed doubts whether the government will actually implement the proposal.

"It sounds like a right thing to do politically, but I do not actually know if it will come up (in the next Budget)," Premji told NDTV on the sidelines of World Economic Summit here.

Asked if he is in favour of rejigging tax slabs, Premji said: "It depends on what rate do they start, but in terms of the super-rich, I think there is a legitimacy in a country as poor as ours".

Several experts including chairman of Prime Minister's Economic Advisory Council (PMEAC) C Rangarajan have underlined the need for imposing higher rates of taxes on super rich.

India taxes income at three rates - 10%, 20% and 30%. These rates were fixed in 1997.

Finance minister P Chidambaram will have to take a call on the issue of levying higher tax rate on super rich in his budget proposals to be presented in the Lok Sabha on February 28.

The Minister, however, in his recent meetings with investors in Hong Kong and Singapore had indicated that he might not increase the tax rates but would focus on compliance to increase revenue.

 

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