Wealth tax to discourage savings

Published
3

THE government has levied 0.5 per cent wealth tax in the budget for the year 2013 - 14 on all movable assets. It will be on all money in the bank accounts, fixed deposits, shares in public and private companies, prize bonds, cars and any other types of movable assets.

What Churchill said in 1945 when Britain decided to give independence to undivided India has come true. He said: These men in India are of straw. They will tax everything under the sun. Even air will not be free to breathe.”

Wealth tax was removed in 2003 but the PML - N government has levied it once again. This is an exception as wealth tax is not levied in India, Bangladesh, Sri Lanka or in any Western country.

This is bound to discourage savings and stock markets and will encourage flight of capital from the country.

RAZA ALI DOSSA Karachi

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