The main recommendations include, making CSR expenditure tax
deductible, provision for carry forward of unspent balance for a period of 3 5 years, aligning Schedule 7 with the SDGs by adopting a SDG plus framework (which would additionally include sports promotion, Senior Citizens welfare, welfare of differently abled persons, disaster management and heritage protection), balancing local area preferences with national priorities, introducing impact assessment studies for CSR obligation of 5 crore or more, and registration of implementation agencies on MCA portal.
The Ministry of Finance offered to make the welfare expenditure tax
A capital grant of some 10,000 euros, dollars, or pounds -- funded by a tax on lifetime bequests, or a progressive expenditure tax
-- would give every young person a stake in society, a buffer against misfortune and the means to invest in their future.
The input tax credit that can be claimed by banks for expenditure tax
is also significantly low (compared to other industries).
Another variant of the flat tax is a personal expenditure tax
(also called a "consumed income" tax).
The government may also introduce a financial transactions tax and a general expenditure tax
Among specific topics are a supplemental expenditure tax
, allowances for corporate equity, designing anti-base-erosion rules for developing countries, exchange of information in developing countries, the value added tax and customs treatment of the mining industry in sub-Saharan Africa, and using anti-money laundering measures to improve tax compliance.
Tax experts say the chancellor is likely to announce the introduction of an investment allowance that will reduce the capital expenditure tax
rate, a proposal the Treasury put forward last autumn.
"This is like levying income tax and expenditure tax
. It is a confusing tax system," says Vivek Mishra, Leader, Indirect Tax, PwC.
China, home to the world's second-largest and fastest-growing economy, has an income tax to expenditure tax
ratio of less than 1 to 1.
With the enactment of three key bills (HEA 1001, HEA 1003, and HEA 1004), Indiana parents may now take advantage of a school expenditure tax
deduction, school scholarships granted from private Scholarship Granting Organizations (SGOs) which are incentivized with a tax credit, and Choice Scholarships (generally referred to as vouchers) granted to low-income parents and funded by the state of Indiana.
A fundamental alternative to CIT model might be to implement an expenditure tax
levied on the net cash flows of individual taxpayers and firms.