Govt To Consider Personal Income Tax Cuts To Boost Growth

Talking at the Hindustan Times Leadership Summit 2019 in Delhi on Saturday, finance minister Nirmala Sitharaman hinted a possible cut in personal income tax rates.

Sitharaman said that it was "one among the many things we are looking at" to provide relief to individuals and encourage consumption.

When asked how soon there will be a relief on personal income tax, she said, "wait for the Budget".

Union budget for the financial year 2020-21 is scheduled to be presented in February.

Further, Sitharaman spoke of simplifying the tax regime and making it harassment-free.

The finance minister's statement comes amid a slowdown in economic growth in the county on the back of falling consumption levels and sluggish private investment.

GDP growth data released for the July-September period on 29 November was reported at 4.5 percent, the slowest pace in 6 years.

The government has been announcing measures to revive growth. In September, the finance ministry slashed the corporate tax rate for new and domestic manufacturing companies to encourage investment.

The corporate tax rate cut will cost the government Rs 1.45 lakh crore in revenue, according to experts. A personal income tax cut is likely to put more pressure on the government's finances.

source: goodreturns.in