Property tax rates should be higher, says the economic Survey 2016

The Economic Survey for 2015-2016, which was tabled by Finance Minister Arun Jaitley in the Parliament today, has called for higher property tax rates.

As per the survey, "Higher Property tax rates with periodic updation will improve local government finances, discourage speculation in real estate sector and pave the way for smart cities."

The survey talked extensively about taxation, saying that the proposed Goods and Services Tax (GST) as a reforms measure will "perhaps be unprecedented in the modern global tax history."

The survey results add that GST is estimated to affect between 2 to 2.5 million excise and service taxpayers, impacting dramatic changes in the Indian tax system.

Other than this, reasonable taxation of the better-off individuals regardless of where their income comes from is also proposed.

The survey recalls the promise that was made to bring down Corporate Taxes from 30 to 25% while proposing that the exemptions should be phased out orderly.

Not only this, the economic survey also called for a review and phasing out of the tax exemption Raj, which so far has only benefited the richer private sector.