29
Tuesday
September 2020
7:16 AM IST
News Headlines
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | Health   | About Deepika 
Business News
Govt working on more measures to boost economy; income tax rate cut under consideration: FM
 
New Delhi: Finance Minister Nirmala Sitharaman on Saturday said the government is working on more steps, including rationalisation of personal income tax rates, to revive the sagging economy.

The GDP growth slowed down to more than six-year low of 4.5 per cent in the second quarter of the current fiscal from 5 per cent recorded in the first quarter.

The government has taken several measures during August and September to boost the economy, she said at the HT Leadership Summit here.

Besides, she said, the public sector banks have disbursed nearly Rs 5 lakh crore without compromising on prudential norms in the last two months to boost consumption in the hinterland.

"So there are ways in which for giving stimulus for consumption. We are adopting a direct method and also the method through which we are spending on infrastructure, whose spillover can go to core industries labour and so on," she said.

Asked if there could be more measures announced to bolster economic activity, she said, "If I say yes, it will be when and if I say yes it's also going to be back to me saying are you not too close to the budget. So I don't want to say yes although I am wishing I can say. At the same time, I will not say no, because we are working on more."

When asked if the government is considering rationalisation of the personal income tax rate for putting more money in the hands of people, the Finance Minister said, "One among many things that we are thinking of."

Following the reduction in corporate tax in September, there has been a growing demand for a slash in the personal income tax to buttress consumption.

In the biggest reduction in 28 years, the government in September slashed corporate tax rates up to 10 percentage points as it looked to pull the economy out of a six-year low growth with a Rs 1.45 lakh crore tax break.

Base corporate tax for existing companies has been reduced to 22 per cent from 30 per cent, and to 15 per cent from 25 per cent for new manufacturing firms incorporated after October 1, 2019, and starting operations before March 31, 2023.

Assuring that there will be no harassment of taxpayers, Sitharaman said the intent of the government is to further simplify taxation systems including removal of exemption.

Citing the example of corporate tax, she said, "From now on, they're moving towards a greater simplified and exemption free. Therefore, has harassment-free therefore subjective interpretation free taxation regime."

Besides, she said the government has introduced faceless assessment of direct tax and soon this will be introduced in indirect tax to eliminate harassment.

On the Goods and Services Tax (GST) the Finance Minister said, the rate structure will have to be decided by the GST Council.

Eventually, the rates have to be rationalised and the entire tax system has to be simplified, she added.

"One, the tax per se, is getting complicated because of this unstructured bringing down of rates. Another, it's also getting complicated because you want to be sure that you're doing everything correct, but ending up asking for so much more information in a technology-driven system. People just get fed up of wanting to give so much information. So, we have problems in both the hands," she said.

With regards to apprehension raised on the genuineness of data, the Finance Minister said, "There's no doubt, we need to bring credibility back to the data."

The government is aware of the debate which is going on on data and its credibility, she said, adding, the intention is to make sure that any kind of inappropriate methodology which is coming into the data will have to be addressed.

"So we will have to work towards better credibility, we have to work towards making available data without any obstruction," she said.

Asked how she reacts to criticism of her at various quarters, she said "I don't allow it to worry me. I'm not inhuman I do sometimes do get affected by it, but I suppose it's part of the job. So, I can't really wish it away. It comes, let it keep coming. I handled it.


BPCL pays for defaulting Videocon in Brazil oil block
Temporary retention of GST cess pending reconciliation not diversion: FinMin sources
Trai drops probe against Voda Idea on priority plan issue after telco tweaks offer
Sensex climbs nearly 400 points in early trade; Nifty above 10,900
Rupee depreciates 26 paise to 73.83 against US dollar in early trade
STL strengthens global leadership team to drive the next phase of growth
HCL Technologies shares jump 5 pc after DWS deal
Sensex, Nifty start on cautious note; HCL Tech rallies over 4 pc
TCS sets up 11 COVID-19 isolation centres for staff, their dependents
Over Rs 70K crore worth of loans sanctioned to discoms under liquidity package: Govt
US stocks fall as market decline extends for third week
No decision to discontinue printing of Rs 2000 note: FinMin
More Indians in Singapore returning home due to job losses: Envoy
Rupee drops 13 paise to 73.73 against US dollar in early trade
Trai grants Voda Idea time till Sep 8 to respond to priority plan show-cause notice
PVR defers capex plans to control costs amid COVID-19 disruptions
India's commitment to reform being taken seriously by foreign investors: FM
Air India to resume Mumbai-Aurangabad flights from Sep 15
Paytm FY'20 revenue rises to Rs 3,629 cr, loss narrows by 40 pc
Sensex tanks over 600 pts on global selloff; Nifty below 11,400
KERALA NEWS
COVID-19 tally in Kerala racing towards 1.50 lakh mark
 Thiruvananthapuram: The COVID-19 tally in Kerala is racingtowards the 1.50 lakh mark as 4,125 cases  
Take steps to attach properties of pvt financial institution; HC to govt
Kerala logs single-day highest spike of 3,830 COVID-19 cases
Jaleel has committed no wrong, says Kerala CM
INTERNATIONAL NEWS
Leaders to UN: If virus doesn't kill us, climate change will
 Johannesburg: In a year of cataclysm, some world leaders at this week's annual United Nations meetin
Swiss vote on limiting jobs, residency for EU citizens
Trump expected to announce conservative Barrett for court
US moves to restrict stay of Chinese journalists to 90 days
NATIONAL NEWS
Jaswant Singh dies, PM Modi pays tribute
 New Delhi: Former Union minister Jaswant Singh, a close associate of ex-prime minister Atal Bihari V
India-Pak troops exchange fire along IB in JK's Samba
ICMR’s second sero survey shows that India far from achieving herd immunity: Health Min
BJP's oldest ally SAD quits NDA
Untitled Page
Rashtra Deepika LTD
Copyright @ 2020 , Rashtra Deepika Ltd.