Delhi, Dec 07, 2019: A tax rate cut is among the proposals on table to revive the sluggish growth, Finance Minister Nirmala Sitharaman said at the 17th Hindustan Times Leadership Summit on Friday. This comes days after the RBI cut the gross domestic product (GDP) growth forecast for the current fiscal to 5% from 6.1%, Hindustan Times reported.
Sitharaman was delivering the inaugural address on the second day of the two-day 17th Hindustan Times Leadership Summit that saw stalwarts from various fields ideate and discuss the theme ‘Conversations For a Better Tomorrow’.
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“Tax rate cut is one among the many things we are thinking to boost growth,” said Sitharaman. “Fiscal discipline is a law. I have to obey the act. I have to go by the glidepath given to me from 2014 if not 2004. The learned economists are telling us that we have to pause the fiscal discipline and move towards more fiscal stimulus,” she added.
On other proposals to lift economy, the union minister said she would like to hear from others what can be done to boost consumer confidence. “I ask that question all the time. I do not want to think what I have done is enough. I want to know it from others. That question cannot be alone addressed by me,” she said.
In good news for taxpayers, the minister said that she was working on a simplified tax regime. “From now on, the taxation regime will be simplified, exemption free. We are moving towards a more simplified and harassment-free taxation regime,” said the finance ministerwas. She appealed to the assessees to approach revenue secretary’s office to make sure all problems are addressed.
Speaking on the GST, Sitharaman said: “In enthusiasm to reduce more taxes, credit became minuscule and the framework originally agreed upon on phase one of GST got distorted… I can only give a confidence that we shall have a streamlined GST and address the issue for the assessee.”