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flag India faces warnings against raising income surcharges or reinstating wealth tax, citing risks of capital flight and reduced investment.

flag Tax experts warn India against raising income tax surcharges or bringing back a wealth tax in the 2026-27 budget, citing risks of capital flight and reduced investment. flag High marginal rates may push wealthy individuals and businesses to relocate, undermining job creation and long-term revenue. flag The wealth tax, scrapped in 2015 for low collections and high compliance costs, is seen as inefficient. flag Experts stress that tax stability and modern enforcement tools like GST and CRS make surcharge adjustments a more effective revenue strategy than punitive measures.

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