January 12, 2025 - 21:12
The Finance Ministry has announced the formation of a dedicated panel to examine the feasibility of implementing a Negative Income Tax (NIT) system. This initiative aims to address the challenges within the current tax framework and enhance the efficiency of the state welfare system. The panel will explore how an NIT could provide direct financial support to low-income individuals and families, effectively reducing poverty and incentivizing work.
The Negative Income Tax concept involves providing payments to individuals whose income falls below a certain threshold, thereby ensuring a minimum standard of living. This approach could potentially streamline welfare benefits and reduce bureaucratic complexities associated with traditional welfare programs.
As the panel embarks on its study, it will consider various models and best practices from other countries that have successfully implemented similar systems. The outcome of this examination could lead to significant reforms in the tax structure, ultimately aiming to create a more equitable and supportive economic environment for all citizens.
