Activists, writers urge PM to impose 2% wealth tax on the richest 1%

A host of activists and writers have petitioned Prime Minister Narendra Modi requesting him to impose “2% wealth tax on the richest 1% of the country” to fight COVID-19 pandemic.

The signatories include activists Medha Patkar, Aruna Roy and Kannada writer Devanur Mahadeva.

Terming the relief package announced by the Union government “inadequate and incomplete”, the letter points out the need to reinvigorate the public health system, which they argue, calls for an additional investment of at least 1.5% of the GDP — ₹3.4 lakh crore. They also demanded Direct Cash Transfer of at least ₹4,000 for two months for 20 crore poor families, apart from what is already being spent.

The letter suggests to impose an “Emergency Corona Tax” — 2% wealth tax on the richest 1% of the population, which as per the recent Oxfam Report holds ₹381 lakh crore in 2019. “This proposal of levying 2% wealth tax on the super-rich is mandated by the Constitution in Article 38(2) – “minimise the inequalities in income”; and Article 39(c) – “[securing that] . . . the economic system does not result in the concentration of wealth . . .” Hence, in accepting our proposal, you would be only implementing the Constitutional imperative,” the letter further argues.