Slash personal income tax rates, CII urges govt

New Delhi, November 20

Even as Union Finance Minister Nirmala Sitharaman will begin pre-Budget consultations on Monday, industry body CII has sought a reduction in personal income tax rates, decriminalisation of GST and a relook at the 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 tabled in 2024, an election year.

Will revive demand

The goverment should contemplate a reduction in the rates of personal income tax in its next push for reform as this would increase disposable incomes and revive the demand cycle. —Sanjiv Bajaj, CII Prez

“The government should contemplate a reduction in the rates of personal income tax in its next push for reforms as this would increase disposable income and revive the demand cycle,” said CII president Sanjiv Bajaj in the pre-Budget note. Consumption will also get a boost on reduction of 28% GST on select consumer durables and expediting rural infrastructure projects, he said. Besides decriminalisation of the GST, Bajaj said no arrests or detention should take place in civil cases unless criminalisation in business has been proved beyond doubt. The apex industry chamber also said “non-merit subsidies” estimated at 5.7% of GDP — 1.6% from the Centre and 4.1% from the states — is clearly unsustainable.

Besides meeting industry captains and infrastructure specialists on Monday, Sitharaman will also interact with climate change experts on Monday. The next day she will meet representatives of agriculture and agro-processing sectors besides capital markets and financial sector experts in two separate meetings.