(LiveMint)
The government is designing a rather unconventional plan to reward India’s top income taxpayers and encourage them to part with their money. For their contribution to nation building, these tax payers will have the privilege of being invited to tea with the finance minister or the prime minister, among other non-monetary incentives. The idea was to encourage them to willingly pay more in case the government needed to mobilize more revenue, a person familiar with the discussions in the government said on condition of anonymity.
The aim was to help the income tax department collect tax as painlessly as possible, the person said. The scheme, which could figure in the first budget of the National Democratic Alliance (NDA) government’s second term, also reflects the desire of the Narendra Modi administration to work out a more progressive tax system, in which the wealthier you are the more taxes you pay. Modi had on several occasions thanked taxpayers, saying investments into connectivity and infrastructure would not be possible without their cooperation.
