‘Borrow to meet deficits, not impose higher taxes’: Chidambaram’s message to Centre, states

‘Borrow to meet deficits, not impose higher taxes’: Chidambaram’s message to Centre, states

Former Finance Minister P Chidambaram on Wednesday said that the governments must borrow to meet their deficits and not resort to imposing new or higher taxes amid the coronavirus crisis.

Chidambaram said imposing higher taxes should not be done at a time when the economic activity in the country has “ground to a halt”.

“New or higher taxes will impoverish families further. Governments must borrow to meet their deficits, not impose higher tax burdens when economic activity has ground to a halt,” Chidambaram tweeted on Wednesday.

 

He said the imposition of new or higher taxes makes sense only when the economy is booming. 

“Tax burdens on the middle class and poor is actually taxing distress,” the former finance minister said.

“We have been pleading for cash transfers from the government to the bottom half of the people/families. Instead governments are doing a REVERSE TRANSFER of money from the people to the government! Cruel,” he added.