Consider suggestions for a personal I-T cut: finance minister Sitharaman
NEW DELHI: Minister of Finance Nirmala Sitharaman on Monday he said he had accepted the suggestion of lawmakers to reduce personal income tax rates and that it would be considered on his merit, rather than aligning with the government's decision to reduce corporate income tax rates .
Your comments on personal income tax rates answered a question from the TMC member Saugata Roy during a discussion in Lok sabha where I was testing the bill to modify corporate tax rates.
It is very different to compare developed countries and developing countries and emerging economies and then say that they have a reduction in income tax and, therefore, should give, said Sitharaman. He added that the government has periodically given relief to individual taxpayers and several exemptions have been offered.
Now, because we want more investments in this country, we have granted it to all companies under the Companies Law to bring a kind of parity and say the personal income tax ... I prefer to deal with the tax to personal income alone. instead of having done this, I should do that, ”said Sitharaman.
She said she valued everyone who earned a living, paid their taxes and looked after their family and businesses. Then, the personal income tax will be considered on its merit, Sitharaman said.
But Roy persisted with his demand, which led the FM to say: I have taken it as a suggestion. The discussion about a cut in personal income tax rates gained momentum after the government revealed a sharp reduction in corporate tax rates in September to revive sentiment, attract investments and boost growth.
A government panel on direct tax He suggested relief for taxpayers and the finance minister had previously said that the government was examining the report. Experts have demanded a cut in personal income tax rates to increase demand and consumption, but the government has little room to reduce rates, given the concern about the fiscal deficit that, according to the Center, will remain at the target level of 3.3% of GDP.