Be prepared to pay more tax next year. The Fifteenth Finance Commission (FFC) chaired by NK Singh may suggest a cess on direct taxes for a non-lapsable national defence fund.
ET learns from multiple sources that the FFC, which is scheduled to submit by the end of October its report and recommendation on how union and state governments should share tax revenues for five years beginning 2021, is likely to suggest monetisation of land and sequestering a portion of import duties for the fund. Total land under the control of defence organisations is estimated to be over 1.75 million acres.
“The Commission is deliberating on its multiple TORs. Its recommendations would be contained [in] its final report. Any speculation or conclusion in this regard would be misleading,’’ an FFC spokesperson said responding to ET’s query on the fund.