Economists want higher taxes, lower deficit
February 26, 2013 09:10
With a few days left for the next Union Budget, some senior economists suggested a higher income-tax rate for those earning Rs 15 lakh and above a year and an increase in service and excise duty, to help the government stick to its fiscal consolidation path.
The priority for the Central government is to cut fiscal deficit to 4.8 per cent of gross domestic product in the next financial year from 5.3 per cent pegged for 2012-13, said economist Shankar Acharya.
He suggested raising the personal income tax rate for those who earn Rs 15 lakh annually and above. Acharya also prescribed raising the excise and service tax from the current 12 per cent and moving various concessional rates in excise towards a higher central value-added tax rate.
Finance Minister P Chidambaram will present the Budget for the next financial year in Parliament on Thursday.
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