Slash personal income tax rates, CII urges govt: The Tribune India | Tech Reddy
New Delhi, November 20
Although Union Finance Minister Nirmala Sitharaman will begin pre-budget consultations on Monday, industry body CII has sought a reduction in personal income tax rates, decriminalization of GST and a review of capital gains tax rates.
The Finance Minister is likely to present the Budget for 2023-24 on February 1, 2023. This will be the last full Budget of the Modi government as a vote of account will be presented in 2024, an election year.
It will raise the demand
The government should consider a reduction in personal income tax rates in its next push for reform, as this would increase disposable incomes and revive the demand cycle. -Sanjiv Bajaj, CII Pres
“The government should consider a reduction in personal income tax rates in its next push for reforms, as this will increase disposable income and revive the demand cycle,” said CII President Sanjiv Bajaj in the pre-budget note. The consumer will also get a boost on the reduction of 28% GST on the selected consumer durables and accelerate rural infrastructure projects, he said. Besides the decriminalization of GST, Bajaj said that no arrest or detention should be carried out in civil cases unless the criminalization in the business has been proved beyond doubt. The apex industry chamber also said that “meritless subsidies” estimated at 5.7% of GDP – 1.6% from the Center and 4.1% from the states – is clearly unsustainable.
Apart from meeting captains of industry and infrastructure specialists on Monday, Sitharaman will also interact with climate change experts on Monday. The next day he will meet the representatives of the agriculture and agro-processing sectors in addition to capital markets and financial sector experts in two separate meetings.