Why does the Indian government levy an "exit tax"?

April 12 news, the Indian government is trying to introduce new measures to curb the phenomenon of "brain drain" of the rich. According to timely magazine's April 1 1 report, the Central Committee of India (CBDT) has set up a special group to prepare a series of regulations for people seeking to emigrate to other countries to pay a certain fee.

According to the report, the departure of the rich has a direct impact on the Indian government's tax revenue, and the CBDT team is seeking ways to prevent the tax base from shrinking and people from moving to other countries.

20 18 in March, a report by Morgan Stanley Investment Company showed that 7,000 rich people left India in 20 17. In the past four years, about 23,000 rich people have lost their jobs. According to the statistics of Credit Suisse, in 20 17, there were about 245,000 rich people in India.

Jiger Saiya, a tax regulatory partner of the law firm, said: "Some countries in the world have exit or departure taxes. For example, if someone immigrates from Canada to another country, the assets owned by this person that are considered to be disposed of will be taxed. "

If someone chooses to leave the country permanently, even if his assets are not sold, the Canadian government will still think that all his assets have been disposed of. This is called "hypothetical sale", which may lead to an increase or decrease in capital. This person needs to pay taxes before leaving the country.

However, an Indian tax expert said that the tax authorities should ask why people want to leave India, otherwise the problem will not be completely solved.