Ahead of the budget, the government is examining a number of proposals including a flat tax rate without exemptions, new slabs for those earning higher incomes and cuts in personal income tax, reported The Economic Times, citing government officials. The centre is considering the proposals to boost consumption to revive growth, the report added.
According to the government officials cited in the report, the finance ministry will present arguments for and against these proposals before a final call is taken on the same.
“All options are being examined... Any such move needs to be examined in the context of gains it can bring to the overall economy vis-a-vis the cost it entails," an official was quoted as saying in the report.
"An alternative to income tax cuts is putting more money in the hands of the people directly through schemes such as PM-KISAN or enhancing the spending on infrastructure. Any possible change in the structure will only benefit the 30 million individuals who pay income tax," the report said, citing the official, who added that "the cost to the exchequer needs to be balanced with benefits by way of a consumption boost."
First Published: IST