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While it’s a progressive budget, the steep hike in tax rates for individuals above certain thresholds does not augur well with underlying theme of moderate tax rates and increased voluntary compliance to increase the overall tax base.
“The recent election which brought us to this august House today, was charged with brimming hope and desire for a bright and stable New India." With these opening remarks, the finance minister Nirmala Sitharaman presented the first comprehensive budget of the Modi 2.0 government on 5 July 2019. Amid high expectations, the government had a tough task at hand to balance the expectations and deliver a budget which would put India back on a faster growth trajectory.
Vikas Vasal
Partner, Grant Thornton India LLP
This article appeared in Live Mint on 19th July, 2019.