Pissarides committee calls for single taxation for incomes

All incomes from a series of sources should be taxed in the same way, according to an action plan prepared by the committee of experts led by Nobel Laureate Sir Christopher Pissarides.

The blueprint that is set to be released on Tuesday proposes that revenues from property rentals, capital gains from securities and possibly dividends should be taxed according to the same set of tax rates as the incomes of pensioners, salary workers and freelance professionals.

Today the tax on revenues from rent ranges from 15% to 45% depending on the level of income, while earnings from stocks and bonds are independently taxed at a 15% rate and dividends at 5%.

If the government adopts the proposal to tax all kinds of revenues in the same way without reducing the tax rates, there will be significant hikes in many taxpayers' dues.

However, the committee is recommending...