There is a lot of speculation related to Henry Tax review which will be announced on Sunday. Many different opinions are being expressed in this matter. Economic experts feel that many changes may not have the desired impact and may lead to various negative consequences.

Many feel that it will lead to a cancellation of the practice of filing annual returns for the majority of taxpayers. Some experts are divided on the issue and doubt if the Government would necessarily agree to all the recommendations.

Tax payers may be happy with cancellation of annual tax returns but may also lose out on claiming tax related deductions. But some feel that changes are certainly required in the tax structure. Tax experts also felt that the capital gains tax needs to be taxed at full income tax rates than on the current income levels.

Capital gains tax already has a major impact on the working of the share market and any change in its structure can also lead to volatility in the stock markets.

After the impact of global financial and economic crisis, a serious rethinking is needed on the tax and investment related issues, argued financial experts. A constant tinkering in taxation rates can also have a negative impact on the public perception, stressed tax experts.

Many feel that the coming tax review is not going to be binding on the government and Government is not obliged to follow its recommendations.