We Are Not Done Yet, Says Finance Minister Nirmala Sitharaman says at event. The government may soon relax the personal income tax burden to provide relief to individuals and boost consumption by putting more money in the hands of people, FM hints at HT Summit.
Saturday morning, FM Sitharaman took part in Summit. She said, “A cut in personal income tax, one among the many things we are looking at”. When Good News Will Come ? On same topic, Question asked to FM that How soon there will be a relief on personal income tax, Answer was “wait for the Budget”.
“Tax rate cut is one among the many things we are thinking to boost growth,” Sitharaman said. “Fiscal discipline is a law. I have to obey the act. The learned economists are telling us that we have to pause the fiscal discipline and move towards more fiscal stimulus,” she added.
Already Announced Mini Budget
To revive dull and depressing economy, Modi govt announced corporate tax cut worth extra burden of 1.45 lakh cr to centre. In September, the finance ministry slashed corporate tax rate for new and domestic manufacturing companies to encourage businesses to invest more amid a slowdown. For companies that do no avail any tax incentive, the rate will be 22% from 30% earlier, while the effective corporate tax rate after surcharge will be 25.17%, including cess and surcharges.
Fiscal Deficit Crossed Estimate
Latest Govt data indicates, Modi Govt overshot annual fiscal deficit target by 102.4% and exhausted 112.5% of the revenue deficit target during April-October.
GST Slab May Changed
Later in December, GST Council will gather for GST return filling form simplification. According to some reports, Govt looks to change slab of GST. Govt may hike 5% GST slab to 6% to cover GST collection deficit. This hike also help govt to fulfill revenue deficit and direct tax collection shortage.