India Finally Raises Taxes Through New Finance Bill
The Lok Sabha has finally passed the Finance Bill this week, that gives momentum to the new taxation regime, and has finally completed the Budgetary exercise for 2022-23 fiscal. After the acceptance of 39 amendments officially, the finance minister Nirmala Sitharaman approved the Finance Bill in tandem with a majority vote in the Lower House yesterday.
A voice vote was used essentially to reject the amendments proposed by the opposition. Feeling proud of the Indian achievement, she said that India was probably the only country that did not resort to new taxes to fund the recovery of the economy hit by the Covid pandemic. She advocated for the fact that indeed the Modi government believes in lowering taxes and not passing the buck to the general public.
Speaking to the media about the development, she said that instead of passing on the tax to Indians, “we put more money where multiplier effect would be maximum,” while referring to the Budget’s focus on raising capital expenditure. The Budget 2022-23 raised Capex by 35.4 per cent to Rs 7.5 lakh crore to continue the public investment-led recovery of the pandemic battered economy.
According to an Organization for Economic Co-operation and Development (OECD) report, as many as 32 countries have increased the tax rates after the pandemic. The pandemic has been a major reason for the restructuring of the tax regime in a major way. The reduction in corporate tax has “helped the economy, government and companies, and we are seeing the progress.” She said Rs 7.3 lakh crore has been collected as corporate tax so far this fiscal. The number of taxpayers has increased to 9.1 crore from 5 crore a few years back, she said, adding the government is taking steps to widen the tax base and the faceless assessment has been received well by the people.