Letter to BS: Will re-introduction of wealth tax help the Indian economy?

Experience shows the imposition of such draconian taxes has failed to serve the real purpose

This refers to “Budget 2020: Time to re-introduce wealth tax, says Abhijit Banerjee” (January 28). Notwithstanding Nobel laureate and economist Abhijit V Banerjee's latest call for the re-introduction of a wealth tax in India considering the rising inequality, the nation's current economic scenario does not justify such a plan. In fact, such a move might turn out to be counterproductive as our economy is facing a huge mismatch between demand and investments, which is essential to achieve the desired level of the economic growth. In fact, our experience shows the imposition of such draconian taxes has failed to serve the