Tax forgone is not a loss of revenue

For promoting export, small-scale industry, education, health care and giving subsidies for the poor and the middle class in transport, exemptions are necessary

Sukumar Mukhopadhyay
Last Updated at May 5, 2019 22:46 IST

I have chosen this subject for writing mainly because a political party is now trying to misguide the public by mentioning in its manifesto that the central government between 2009 and 2013 had forgone Rs 21 trillion of central government tax revenue as tax concessions, which was a plunder by big business houses. I wish to clarify to the readers that this whole concept that tax concessions are not a loss, nor plunder. The economic significance of tax concessions has to be understood with the mind of an economist, and not that of a propagandist.

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