Lok Sabha Question No. 2950 (UNSTARRED), answered on 2022-03-21
Subject: Wealth Tax
Ministry: FINANCE
Asked by: Sajda Ahmed

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 2950

TO BE ANSWERED ON MARCH 21, 2022

## WEALTH TAX

## 2950. SHRIMATI SAJDA AHMED:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has taken note of the increasing inequality trend during the last two years;
- (b) if so, whether the Government proposes for one time wealth tax;
- (c) if so, the details thereof along with the other measures taken by the Government to address the growing inequalities in the country;
- (d) whether poverty has increased during the last three years; and
- (e) if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a)  Household  consumption  expenditure  data  collected  by  National  Sample  Survey  Office  (NSSO)  was used as a proxy to capture the income inequality in terms of consumption expenditure. However, the latest data of large sample survey on household consumer expenditure collected by NSSO in its 68 th round is for 2011-12.
- (b) There is no proposal under consideration of the Government for imposition of a wealth tax.
- (c), (d) & (e) The erstwhile Planning Commission estimated poverty line and poverty ratio on the basis of Large Sample Surveys on Household Consumer Expenditure carried out by the National Sample Survey Office (NSSO) of the Ministry of Statistics and Programme Implementation. The last data of Large Sample Survey on Household Consumer Expenditure has been collected by NSSO in its 68th round conducted in 2011-12. Based on this data, the erstwhile Planning Commission estimated poverty lines and poverty ratio in 2011-12, and the same was released on 22 nd July 2013.

Using National Family Health Survey (NFHS)-4 (2015-16) report, NITI Aayog has prepared a Multidimensional  Poverty  Index  at  the  national,  states  and  districts  level.  It  aims  to  enable  measuring deprivation across twelve indicators at national, States and districts level. However, since the Multidimensional Poverty Index is based on NFHS-4 data of 2014-15, it can only serve as the baseline for measuring deprivation in future studies.

Government is implementing several targeted schemes that aim to reduce poverty and inequality, provide social security, income generation and livelihood options, and improve the quality of life of the vulnerable sections  of  the  population  in  the  country.  Some  of  these  include  Pradhan  Mantri  Jan-Dhan  Yojana, Deendayal Antyodaya Yojana - National Rural Livelihoods Mission, Deendayal Antyodaya Yojana - National Urban  Livelihoods  Mission,  Pradhan  Mantri  Awaas  Yojana,  National  Health  Mission,  Pradhan  Mantri Jeevan  Jyoti  Bima  Yojana,  Pradhan  Mantri  Suraksha  Bima  Yojana,  Atal  Pension  Yojana,  Aspirational Districts Programme, Pradhan Mantri Kisan Mandhan Yojana, Stand Up India Scheme, Skill India Mission, Start Up India Scheme, One nation one ration card scheme, Pradhan Mantri Shram Yogi Man-dhan yojana, PM Mudra Yojana, Ayushman Bharat Scheme, AMRUT Scheme, Sansad Adharsh Gram Yojana.