Narayana Murthy lauds 10% surcharge on super-rich

Narayana Murthy lauds 10% surcharge on super-rich Super-rich tax announced by Union Finance Minister P Chidambaram in the Budget 2013 is a good move, Infosys Chairman Emeritus Narayana Murthy said.

Mr. Chidambaram on Thursday proposed to impose a 10 per cent surcharge on people who earn more than Rs 1 crore in a year.

Mr. Murthy welcomed the announcement saying the finance minister was right in announcing a surcharge on the rich as such tax in a country where poverty is widespread will be peanuts for people who earn more.

Responding to a question in an interview, he said, "I am quite happy about this surcharge., in a country like India where there is so much of poverty, people earning Rs 1 crore shouldn't crib about paying a 10 percent surcharge."

He added that everyone should pay reasonable taxes. He explained that people in India do not pay any tax on our dividends and long term capital gains tax. So considering all those things, a surcharge of 10 per cent on an annual income of more than Rs 1 crore is just peanuts.

The Infosys Chairman Emeritus added that the finance minister performed a good job by arresting the fiscal deficit at 5.2 per cent of the country's gross domestic product (GDP). Speaking on the topic, he also lauded the finance minister's decision to allocate increased funds to food security, education, healthcare, housing and micro-finance.

Mr. Murthy further lauded the finance minister's goal to contain the fiscal deficit at 4.8 per cent in the next financial year.

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