Chidambaram's Budget tips to Jaitley: Don't slash income tax rate, cut service tax instead
In his weekly column in the Indian Express newspaper, former Finance Minister P Chidambaram has offered some “unsolicited advice” for Arun Jaitley, who will be presenting his fourth Budget on Wednesday.
Chief among the suggestions are that the government should not cut direct tax rates—income tax and corporate tax—and that it should instead cut indirect taxes like service tax and excise duties to boost demand in the economy.
It is widely expected that the Budget will announce relax the income-tax threshold limits to regain the goodwill of the middle class, which has been inconvenienced by demonetization.
Chidambaran is not alone in proposing that the government should not cut income tax rates. Last week, former Chief Statistician Pronab Sen had in an interview to CNBC-TV18 advised against a relief in income tax rates .
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