Union Finance Minister Nirmala Sitharaman Friday said the intent of the current government is to move towards simplification of the tax regime, and the new proposed rules in the Finance Bill would ensure that the middle class will pay lesser for dividends.
Sitharaman was addressing a press conference in Mumbai after attending an interactive session where she discussed the Union Budget which was presented last week. The session was attended by academicians, professionals, economists and journalists.
“The intent of the current government is to move towards simplification of the tax regime,” the finance minister said, adding that the government was trying to implement the many recommendations of the Direct Tax Code Committee.
Sitharaman said that a large section of the middle class will pay tax on dividends at a lower rate, which would effectively mean that they would have more money at their disposal after the implementation of the new proposed rules in the Finance Bill.
“The proposed initial public offering of the Life Insurance Corporation (LIC) of India will bring retail investors into the picture, thus ensuring transparency of issues,” Sitharaman said.
Asserting that the government wishes to decriminalise laws in a manner that civil offences are not treated as criminal offences, she announced that the government started the Companies Act and now they are looking at the Income Tax Act.
The Finance Minister assured that there was no change in the powers of the co-operatives due to the change in laws governing co-operative banks and added that the government was working on the Financial Resolution and Deposit Insurance (FRDI) Bill, but “was not sure of the timeline to table it.”
Earlier today, while speaking to industry representatives at the session in the financial capital, Sitharaman said the budget provides a “discreet and considered” stimulus.
“Based on the experiences that we had in the last round of government trying to provide stimulus, We’ve essentially made sure that we are doing it in a very discreet and considered manner,” Sitharaman said at the interaction.
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