Article link:
Govt
considers cutting personal income tax to lift consumption
Extract from the article: The Indian
government is contemplating reducing personal income tax for individuals
earning up to 1.5 million rupees annually as part of the upcoming Union Budget
2025. This potential tax cut aims to benefit the middle class and stimulate
consumption in the sluggish economy. The final decision on this tax reduction
proposal is expected closer to the budget announcement scheduled in February.
My
Take:
"In my blog post from five years ago, I proposed a
significant overhaul of the personal income tax structure, including reducing
the highest slab rate to 25% from the existing 30%. This aligns with the
current discussion on lowering taxes for specific income brackets, potentially
empowering the middle class and encouraging spending."
"Abolishing
personal income tax, as discussed in a prior blog, could lead to a surge in
household savings and productive investments. The idea of enhancing savings
rates by eliminating income tax resonates with the current government's
consideration of tax cuts to boost economic activities and increase consumer
spending."
"As advocated in one of my recent blogs,
the total elimination of personal income tax could provide individuals with
substantial disposable income, potentially driving up consumption levels. This
increase in consumption, as highlighted in the current tax cut proposal, could
fuel economic growth and job creation."
Call
to Action:
To the Indian Government:
Consider the long-term economic benefits of
reducing personal income tax rates for the targeted income group and ensure
that the proposed tax cuts effectively stimulate consumption and contribute to
overall economic recovery.
With regards,
www.My-Teacher.in /
29 dec 2024
No comments:
Post a Comment