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Raising tax rates in slowdown can hamper revenue

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Mint explains the relationship between tax rates, tax revenue and GDP growth to argue why taxes should not be raised during a slowdown The Centre has distanced itself from a report containing proposals to raise taxes for tackling the economic fallout of the covid-19 pandemic.

Mint explains the relationship between tax rates, tax revenue and GDP growth to argue why taxes should not be raised during a slowdown.

What proposals were made in the report? The report contained a road map with specific suggestions on the revenue and expenditure side.

Some of these suggestions were an increase in the peak tax rate to 40%, introduction of a 4% cess on those with incomes above ₹10 lakh and the introduction of wealth and inheritance taxes.

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COVID-19
United States
United States
Cases: 46 252 513
Deaths: 750 423
Recovered: 0
India
India
Cases: 34 321 025
Deaths: 459 652
Recovered: 0
Brazil
Brazil
Cases: 21 835 785
Deaths: 608 235
Recovered: 0
United Kingdom
United Kingdom
Cases: 9 215 683
Deaths: 141 607
Recovered: 0
Russia
Russia
Cases: 8 494 589
Deaths: 237 619
Recovered: 0
Detail statistic
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