In Argentina, the law to impose a special tax on the very rich people was passed recently. Now the demand for taking steps in this direction has also increased in Britain. A group of academics has demanded the government to impose a one-time wealth tax on millionaires, so that the country can be able to withstand the Corona epidemic. Britain’s treasury is in trouble due to the epidemic. Also, because of this, the economic non-equal gap in the country has widened further.
A Wealth Tax Commission was created last April involving economists and tax experts from the renowned London School of Economics and Warwick University. The motive behind this initiative was to consider the possibility of levying wealth tax. Now this commission has submitted its report. It states that the government can raise £ 260 billion by levying a wealth tax. The commission’s report said that the most equitable and efficient way to raise resources to counter the epidemic is to impose special taxes on the rich.
According to British media, this report was eagerly awaited in Britain. Even the Finance Committee of the House of Commons (lower house of the British Parliament) has discussed the proposed report of this commission on one occasion. The commission has said that at this time it would be better to tax the rich people than to hit on the income or consumption of the working class. The commission’s report suggested a one per cent tax on owners of more than five million pounds of money. They will have to pay this tax on assets above one million.
According to the commission’s suggestion, additional tax will be levied on the total wealth of the person. This will also include his house and any other property, business and financial assets and savings. It has been suggested that if a person has taken a loan by mortgaging any property, then his property should be kept out of wealth tax. The report said that more than five million pounds of property is 17 per cent, more than one million pounds is six per cent and more than two million pounds of property is held by one per cent of the population of the country.
The commission has also suggested that the wealth tax be collected in installments in five years, so that if a person has a shortage of cash income, he will not face any problem in paying this new tax. Arun Advani, a member of the Wealth Tax Commission and Assistant Professor at Warwick University, said one suggestion has been that the government should impose additional fees on income taxes, insurance premiums or VAT to increase its revenue. But now it is a matter of political decision. It is up to the government to tax it.
The report comes at a time when UK Finance Minister Rishi Sunak is considering ways to increase the government’s revenue by increasing taxes. The government has had to spend a lot on providing relief during the Corona epidemic. This has increased the debt burden on him. The British government’s fiscal deficit has reached £ 400 billion this year. Economists have said that if the government reduces spending, it will have a bad effect on efforts to improve the condition of the economy. Therefore, raising additional resources would be the best way for the government.
In view of this, the Wealth Tax Commission has given its suggestions. He has said that this is a time of great change in thinking. The corona epidemic has led to non-equalization in society. In such a situation, by imposing additional tax on the rich people, the government can take such steps in the direction of economic justice, which will also reduce its own deficit.