Labour is planning to raise 7.5 billion pounds by introducing a range of measures for clamp down on aggressive tax avoidance and evasion.

Along with that, Labour will carry out an immediate review of tax collection system for closing loopholes for tax avoiders if it wins power in May.

Labour has also outlined plans for imposing higher fines on tax avoiders. These include changes to the ‘carried interest’ rules. These rules enable private equity managers to pay lower rates of capital gains tax, disguised self-employment and loopholes which allow hedge funds to avoid stamp duty.

Paul Johnson, the director of the independent Institute of Fiscal Studies, said “The Conservatives are committed to getting five billion a year extra. Labour are trumping that by saying seven and a half billion. It’s almost impossible to know up front actually what you can achieve from cracking down on avoidance and evasion.”

The 7.5 Billion is a bit ambitious target compared to five billion which is set by the Conservatives. Conservative junior treasury minister David Gauke has said Labour failed to act for 13 years when the party was in power between 1997 and 2010. He further accused Labour Party’s Ed Miliband and Ed Balls being tax avoiders’ friends.

Shadow Chancellor Ed Balls, said” Working people who are paying more in tax want everyone to pay their fair share. And there shouldn’t be one rule for a few and another rule for everybody else.”

Labour’s ten point plan sets out measures for raising billions of pounds a year and protect the nation’s finances which they will start on day one of the next Labour government.

It also plans to scrap a 200-year-old nom dom tax rules. If this is approved, the individuals do not have to pay tax on income earned overseas. The proposals to this plan will be launced by Labour today.