NEW DELHI: Indian government recently made two direct tax proposals in the Lok Sabha including a 4% raise in the state of surcharge on income tax on no corporate tax payers earning more than Rs 75000 to net an additional Rs 8.1 billion in the current financial year (1990-91).
A statement by finance minister Yashwant Sinha said it is proposed to raise the rate of surcharge on income tax from 8% to 12% in the case of non-corporate tax payers whose income exceeds Rs 75000.
Secondly it is proposed to restrict the deduction for depreciation in the current accounting year to 75% of what would otherwise be allowable he said.
These two direct tax proposals are estimated to yield Rs 600 million and Rs 7.5 billion respectively.
He also announced that the gulf surcharge of 25% on petroleum products levied by the previous government would be continued during the next financial year to ensure that higher international oil prices did not impose an indirect fiscal burden on the economy.
Sinha said however it appeared that the increase would not be sufficient to finance the entire increase in the import bill for crude oil prices during the current financial year.
Article extracted from this publication >> January 11, 1991
