replacing them with alternatives like the banking transaction tax would need to be examined more deeply to fully understand its impact," he said.
Industry body Assocham, however opposed the proposal saying that replacing income tax with expenditure or banking transaction tax will be anti-poor.
"Instead of coming out with new and impractical solutions, the political parties should try and forge consensus on the long pending GST which is rightly billed to be the most important reform measure," said Assocham Secretary General D S Rawat.
Suggesting the radical tax reforms, Pune-based Arthkranti Pratisthan has claimed that this system would actually help grow India's tax revenues nearly three times from about Rs 14 lakh crore currently to over Rs 40 lakh crore.
A senior BJP leader said, however, that it was one of the many proposals currently on table for preparation of the party's Vision-2025 document, and a final decision would be taken only after taking into accounts suggestions from various quarters on Arthkranti's proposals.
Bharatiya Janata Party expects to take a final decision before the general elections, he said.
The proposal has been submitted to BJP's Vision 2025 committee, headed by former party president Nitin Gadkari. This committee is working on reforms in five broad categories -- judiciary, education, police, administration and tax.