According to industry experts, the proposals made by the BJP are unrealistic and are not followed in any part of the world.  They have also sought the party to explain their tax proposals in detail.

 “The proposal to abolish all forms of taxes and introduction of taxes on banking transactions by BJP’s prime ministerial candidate will cost the entrepreneurs heavily,” industrialist YK Modi told Dainik Jagran.

Citing the example of France where similar taxation proposal on banking transactions was proposed, YK Modi said that the corporate world is completely depended on banking system on daily basis and hence the proposal of the BJP would be not industry-friendly.

Extending support to Modi’s bid for simplifying the country’s taxation system, FICCI chairman Sidharth Birla said, “We support the idea of bringing reform in the tax system but unless the BJP is out with its comprehensive policies on the same, nothing can be said.”

Economist and former financial advisor of Finance Ministry, Rajiv Kumar hailed the BJP leader’s idea, saying the tax proposals are revolutionary.

“If the proposed system comes into effect, it can bring around Rs 22 lakh crore revenue for the government in its first year. The existing taxation system also brings the same amount of revenue for the exchequer. So, the proposal of simplifying the whole taxing process is a good idea. However, it is important to uproot the black money issue from the country to make the proposed formula a success,” Kumar said.

While addressing an event organized by Baba Ramdev on Sunday, Modi has said that the present taxation system is a burden on common man and there is a need to reform it and introduce a new system. He demanded abolition of all kinds of taxes and pitched for a single tax in the form of 'Banking Transaction Tax' if the BJP leader becomes Prime Minister.

JPN/Bureau

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