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Excessive tax is social injustice: CJI


Asks Govt to reduce tax burden on citizens

New Delhi, January 24: While tax evasion is a social injustice to the fellow citizens, arbitrary or excessive tax also results in social injustice by a Government, Chief Justice of India S A Bobde remarked on Friday.
He asked the Government to take steps to reduce the tax burden on citizens by saying the ‘excessive taxation’ can be seen as a form of social injustice imposed on the people.
The CJI’s comments came at a time when the Government is set to introduce the annual budget on February 1 and the International Monetary Fund had on Monday slashed the economic growth rate at 4.8 per cent.
India is currently going through high inflation and a weakening of rupee as well as growth slowdown.
In December 2019, the inflation rose to 7.35 per cent which was a five-and-half year high, raising burden on the pockets of common people.
Speaking at the 79th foundation day celebrations of Income Tax Appellate Tribunal, CJI Bobde said the tax should be collected from people like honey bee draws nectar from flowers without harming it. He further said that people should know what is due from them and the Government should know what is due to them that can be achieved through early disposal of cases.
With only a week to the Union Budget 2020, Bobde also emphasised on the speedy resolution of tax disputes, saying it will act as an incentive for taxpayers and free the funds locked in litigation.
“A just and speedy dispute resolution is perceived as a tax incentive by the taxpayer. To the tax collector, an efficient tax judiciary assures that demands arising out of legitimate assessment are not strangled in delayed litigation,” he said, adding that tax judiciary plays a very important role in resource mobilisation of the country and expressed concern over pendency of cases.
The pendency of appeal cases related to indirect taxes in the Supreme Court, High Court and CESTAT has reduced 61% to 1.05 lakh in almost two years. (Agencies)