New Delhi, Jan 11: The Narendra Modi government has given Rs 2 lakh crore annual tax rebate for both direct and indirect taxes to the middle class without putting a single penny burden on anyone, Union Finance Minister Arun Jaitley said on Friday.
“This is the first time that during the five year tenure of a Government a Rs 2 lakh crore annual tax rebate for both direct and indirect taxes is given to the middle class tax payer without a single tax being increased,” he said.
In his Facebook blog on “How the Poor and the Middle Class Benefitted Most from the Modi Government Policies?”, Mr. Jaitley said the government has raised not a single tax in the past five years and indirect taxes have been merged into one in the GST.
He said that commodities have been made cheaper even though the revenue sacrificed now after the rates revision, would be close to Rs 1 lakh crore. Similarly, in every Budget, the lower end of the tax payers has got relief both directly and indirectly.
“Even though the taxation slab is Rs 2.5 lakh, those with an earning upto Rs 3 lakh need not pay any tax. A Rs 40,000 standard deduction has been given to all employees. Similarly, all investments in housing, insurance and other saving instruments have been increased in the last four years. The cost of this to the exchequer is almost Rs 97,000 crore per annum,” he wrote.
The Minister said the subsidy for housing for the middle class has been liberalised. Inflation during the five year tenure has been kept between 3-4 per cent as against 10.4 per cent during UPA-II.
The Government staff, he said, has benefitted from speedy implementation of the Seventh Pay Commission, the Services have benefitted from the implementation of the OROP, the pensioners have benefitted by the New Pension Scheme.
Jaitley said the government contribution was being increased from 10 per cent to 14 per cent and greater part of rebate being given to the entire amount of 60 per cent which can be withdrawn at the time of superannuation.
“There is a method for economically empowering the poor. Their purchasing power has improved. This helps trade and businesses which impacts positively on the economy. This is the first five year tenure of a Government where India has consistently remained the fastest growing economy in the world. This indeed helps every Indian – the poor, the neo-middle class, the middle class and, of course, the large business community,” he added.
For the farmers, the Minister said besides doubling the expenditure on interest subvention, completing the 99 unfinished irrigation schemes, giving the farmer a crop insurance scheme, the Government has expressed its intention to help the farmer by fixing the Minimum Support Price for the notified crops at 50 per cent higher than cost. The farmers, of course, need greater support and the Government is committed to the same, he said. (UNI)