Will Govt Cut Income Tax Next Year?

As finance minister Nirmala Sitharaman has started the customary pre-budget meetings with stakeholders, the Confederation of Indian Industry (CII) has sought a reduction in rates of personal income tax in order to revive demand in the economy. This could benefit over 58 million individuals who are part of the income tax regime as they had filed ITRs for the assessment year 2022-23. While this proposal may increase the amount of disposable money in the hand of those who pay direct taxes on income and get ignored in the last union budget, the other key proposal by CII if accepted can lead to a reduction in the prices of commodities which attract high GST slabs. CII has suggested that the union government should consider a reduction in the highest 28% GST slab on consumer durables.