Indian industrialist Adi Burjorji Godrej on Saturday expressed his opinion over the Union Budget 2020-2021. In an exclusive interview with Republic TV, Godrej said that the new reforms made in the Budget are not strong enough to revive the economy. He also mentioned that the lowest tax rates applied by the government of India on the working class are the highest in the entire world.
Speaking to Republic TV Godrej said, "We are moving in the right direction but unfortunately, the steps taken are quite small. Like personal tax rates have been reduced provided that you (government) call the exemption. That is not a reduction that is a substitution."
"The exemptions which were there for housing investments, insurance you must give up all the exemption and then you will be able to enjoy all the lower tax rates which I don't think is right. It is a question of reduction of tax rates. The Indian lowest tax rates are some of the highest rates in the world. Nobody taxes people with an income up to three lakhs in the world that is negligible. We tax very low income," he added.
Further focussing on the misses of the government in the current budget he said, "Generally, several announcements have been made which are good but none of them are strong enough to revive the economy. The economy is in such a bad shape, growth rates are low, even Fast-moving consumer goods (FMCG) companies are not doing well. Something much more was required of the budget to turn things around."
Finance Minister announced a new tax regime, she said, "We propose to bring a personal income tax regime, where income tax rates will be reduced, so now, a person earning between Rs 5-7.5 lakhs will be required to pay tax at 10% against current 20%."
No tax: 0-2.5
5% between 2.5-5 lakh
10% tax between 5-7.5 lakh
15% between 7.5-10 lakh
20% between 10 lakh-12.5 lakh
25% between 12.5-15 lakh
30% between above 15 lakh