New Delhi: Union Finance Minister Nirmala Sitharaman on Friday announced revised proposals on the current tax rate cut that would not only boost the sluggish economic growth but also provide a “simplified” and “exemption free” regime for taxpayers. However, she said that the tax relief will come only after the next Budget. Also Read - 7th Pay Commission Latest News: Will Central Govt Employees Get Pending Dearness Allowance From July 1? Check Latest Updates Here
Speaking at the Hindustan Times Leadership Summit 2019, Sitharaman said that the tax rate cut is one of the key aspects that can speed up the growth rate of the Indian economy. Notably, the Reserve Bank of India (RBI) on Thursday cut the gross domestic product (GDP) growth forecast for this fiscal year 2020 from 5 per cent to 6.1 per cent. Also Read - Saving The Industry Amid Pandemic: How Filmboard is Helping Filmmakers With Safe Shoots And Right Budget
The Finance Minister further added that the government is working towards achieving a regime that is hassle-free for taxpayers. “From now on, the taxation regime will be simplified, exemption free. We are moving towards a more simplified and harassment-free taxation regime,” she said. Also Read - Centre Working on Fresh Economic Package to Address 2nd Wave of Coronavirus: Report
“I appeal to the assessees to approach revenue secretary’s office, we will make sure your problems are addressed,” she added.
Sitharaman also said that the Centre was looking at all possible methods, including an income tax cut, to boost India’s economy. “Tax rate cut is one among the many things we are thinking. But you will have to wait for the Budget,” she said.
“We want to make sure that there are no ifs and buts in the entire taxation structure,” the finance minister said adding that she was taking suggestions from all quarters to ensure consumer confidence.
Currently, the central government is working in over 30 measures to revive the bottomed-out economy, including a corporate tax rate cut, easier access to credit for non-banking financial companies, a real estate fund, along with building a more transparent and efficient income tax regime.
Earlier, Finance Minister Sitharaman had also said that additional sops will be implemented for taxpayers in the upcoming Budget of FY2021 so that the middle-class taxpayers may finally get to cheer lower tax rates on their hard-earned income.
The Centre, in the pre-election interim Budget, had announced full tax rebate to taxpayers earning up to Rs 5 lakh a year. However, the subsequent Budget did not offer the promised income tax sops for the salaried class.