The Confederation of Indian Industry (CII) has urged the Union government to reduce income tax rates in order to enhance the common man’s wallet power and subsequently spur economic activities in the country.
CII President Sanjiv Bajaj on Wednesday asked the government to consider reducing the income tax burden on the working class to increase sending and boost buoyancy in the economy.
Speaking at a media meeting here in connection with CII’s “Beyond India @75: Growth Competitiveness, sustainability and internationalisation,’‘ Mr. Bajaj, who is also Chief Managing Director of Bajaj Finserv, aid the country’s underlying growth drivers were strong and the economy would grow in the range of 7.4% to 8.2% cent in the next fiscal.
“Putting additional cash in the pockets of the consumers is critical to reviving consumption demand in the economy. The government 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 and thereby boost economic growth,” added Mr.Bajaj.
He also felt that in the backdrop of the current challenging global economic environment, the country needed to boost its forex reserves to revive the economy, especially in view of the capital outflows by foreign institutional investors. He also said the trade body itself could do a lot towards taking the country to its $40 trillion GDP goal post by 2047.
The CII will hold a special conference, “Sankalp Se Siddhi” in the City on Thursday and Union Home Minister Amit Shah will speak at the event.
