An Exploration Of OECD’s View On Inheritance, Gift And Wealth Taxes And The Future Of These Taxes In India

Advocate Swetha R S

ABSTRACT

In the modern day especially in the COVID-19 pandemic times the world governments are in dire need of additional revenue to revive the economy. In this regard the OECD Centre for Tax Policy and Administration on May 2021 even published a report on the role inheritance, wealth and gift taxes could play in these aspects and the possible ways of improving the efficiency in the future1. As per the report only twenty four of the OECD countries have implemented these taxes. So, what is stopping the other countries from implementing inheritance, wealth or gift taxes? How far will its implementation address the high wealth inequality situation? In recent times considering the pandemic will it be beneficial to reintroduce them?

Different experts have different views regarding the implementation of these taxes. In case the governments decide to introduce these taxes but lack a strong and efficient administration policy and system then it will have its own downfall. Hence it is pertinent to note that a thorough scrutiny of all the factors surrounding them is necessary to decide if it is time to introduce or reintroduce the three taxes in countries that have opted for its non- implementation and to bring in reforms in countries that have already implemented it.

This paper gives a brief discussion on the concepts of inheritance etax, gift tax and wealth tax. It also explores and analyses the OECD’s views on inheritance tax, gift tax and wealth tax. Additionally, this paper also discussed if the time has come for its reintroduction and focus on its reforms for better administration.

Keywords: OECD - git tax - inheritance tax - wealth tax – revenue - tax administration