Finance Minister Nirmala Sitharaman has reiterated that there have been no tax hikes in the Union Budget 2024, emphasizing that the government's decisions were not driven by a desire to increase revenue. In an interview with CNBC-TV18, Sitharaman explained that the Budget's tax policies are grounded in equity and consistency across asset classes.
"Taxes have not been increased because I want more money? The decision is based on the idea that every asset class has to be treated similarly," Sitharaman said, underlining the principle of uniformity in taxation. She described the Budget as 'futuristic,' highlighting the government's commitment to sustaining economic recovery through continued capital expenditure.
Sitharaman also spoke about the National Democratic Alliance's (NDA) third term in office, referring to it as historic. She noted that the Budget includes various allocations aimed at skilling the country's youth, a critical area for India's long-term growth and development.
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Addressing concerns and feedback regarding the proposed tax changes, Sitharaman assured that the government remains open to all views. "The Finance Bill rests with the Parliament now and is the property of the House, I can?t comment on it outside," she said, emphasizing the legislative process and the role of Parliament in finalizing the Budget.
One of the significant announcements in the Budget pertains to the capital gains tax. Sitharaman proposed a uniform long-term capital gains (LTCG) tax rate of 12.5 percent for all types of assets, regardless of whether the transferor is a resident or a non-resident. This move aims to simplify the tax structure and ensure a level playing field for all investors.
The Finance Minister's remarks come amid speculation and scrutiny over the Budget's tax provisions. By clarifying the government's stance, Sitharaman aims to dispel any misconceptions and provide a clear understanding of the Budget's objectives.
The Union Budget 2024 is designed to be forward-looking, with a strong emphasis on infrastructure development and capital expenditure. Sitharaman highlighted that these investments are crucial for sustaining the economic recovery post-pandemic. "We will continue our focus on capital expenditure till the time recovery is sustained," she asserted.
The Budget also reflects the government's strategic vision for the future, addressing both immediate and long-term challenges. By investing in infrastructure and skilling initiatives, the government aims to create a robust foundation for sustained economic growth.
