Ahead of the Union Budget, SBI economists on Tuesday pitched for avoiding new taxes and urged the government to mount “honest attempts” to settle past litigations to raise resources instead.
Given the pandemic and the resultant lessons, an additional expenditure of over Rs 2.5 lakh crore will have to be provided on the healthcare front, the economists at the country’s largest lender said, adding the government spent only 1 per cent of the GDP under this head in FY21.
“One suggestion. There must not be any new taxes in the Budget. Let us have a tax holiday budget, with carefully crafted policies for immediate fiscal lubrication.
“A game changer in the budget could be an honest attempt by the Government to settle the cases under tax litigation once and for all,” they said in a note, adding that as of data available till FY19, the total amount under dispute was around Rs 9.5 lakh crore.
The amount under litigation includes Rs 4.05 lakh crore in corporation tax, Rs 3.97 lakh crore stuck in income tax cases and another Rs 1.54 lakh crore on account of commodities and