The myth of foregone revenue4 min read . Updated: 26 Feb 2015, 02:03 PM IST
It is dishonest to say tax giveaways are doled to private firms. States and citizens gain most from exemptions
The issue of tax revenues foregone by the Union government has been raised repeatedly by eminent persons such as Amartya Sen and S. Gurumurthy and politicians such as Sitaram Yechury. It has become fashionable to raise this issue to castigate the government of the day for handing over vast sums of money to the private sector as tax concessions. Although official data makes it amply clear that the total amount of revenue foregone is made up of a variety of concessions vested interests, either mistakenly or dishonestly, cite the entire amount running into trillions of rupees as tax sops.
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