[saket77]

Originally Posted by somersault

Sir, probably you missed my point. I am not suggesting we remove the indirect tax. My suggestion was to tax uniform and reduce the rate at 12% default.

Every economy needs 3 areas of spending to move the needle. a) government spending, b) corporate spending and c) private consumption.
The GDP moves faster and economy grows when the private consumption and corporate spending is greater than the government spending. So this way, government need not shoulder the complete responsibility of all the growth.

We could make the private consumption more by reducing the indirect tax from 18% to 12% default. As the consumption grows, the corporate sectors will start doing more investments. This way more jobs will be created, more income will be generated and government will have more direct and indirect tax to further invest rightly in the infrastructure or defense building.

The key point is - what indirect tax rate is comfortable and provides the right stimulus to economy.

I am all for any reduction in taxes

The Govt spending vs Private consumption needs to be balanced. It cannot be that private consumption only can spur the economy. Now given that the economic system is such that everything is interlinked and interwind, effects on one can be seen on another, even if it is after a while. For eg. People must buy their stuff like biscuit, shampoo, oil, soap etc which can drive the private consumption. Govt is obviously not going to buy these stuff from consumer staples/ discretionary companies. In the same way, infra projects which drive companies like L&T, defense companies, steel makers, etc can only grow with Govt spending. No individual is going to buy products or services of such companies. If you look at economic data, then over the last year, Govt spending has reduced to a great extent which is also a major cause of the state of markets now.

But yes, lowering the taxes leading to higher disposable income will surely lead to higher private consumption which will obviously provide the impetus to the economy along with the rate cuts (in turn this will reduce Govt receipts, hence lower Govt spending) But all this is wishful thinking, hence my demands from the Govt in my original post was very limited.

[MadinMumbai]

Originally Posted by saket77

As citizens, we also need to understand that the country and the systems needs money to run. If products aren't taxed, how will these systems work? In fact, GST on all products makes sure that everyone pays taxes unlike income taxes, hence it is not a bad thing actually.

As citizens we are more than aware of our responsibilities. In fact, I am thrilled to see a 100 car cavalcade escorting a single mantriji, who, ostensibly, visits my area for my good (which I, being a doofus, am usually unaware about). This kind of tax enabled goodness that our babus and mantris practice makes me want to work harder, earn more, and pay more tax so that this 100 car convoy can be turned into one with 200 cars.

[Tollfreerider83]

I too have 0 expectations from this budget. However, I wish to suggest that govt considers giving some options to honest taxpayers towards meeting their basic needs.

For example - someone in 10% tax slab and paying taxes diligently gets 1 opportunity in the financial year to get his/her grievance sorted out on anything without needing to run from pillar to post.. it could be a road with potholes, a drainage that was never laid or getting his/her house built without bribing a sarkari babu! If you pay 20% tax then you get 2 opportunities and likewise.. it's something you earned by virtue of being an honest taxpayer..

Give your taxpayers something in return - a superpower to raise a valid issue and get a resolution.. If I paid 5 lacs as tax let me atleast see some benefits worth 2 lacs that takes care of my concerns!

[umashankar]

Originally Posted by Tollfreerider83

I too have 0 expectations from this budget. However, I wish to suggest that govt considers giving some options to honest taxpayers towards meeting their basic needs.
====
Give your taxpayers something in return - a superpower to raise a valid issue and get a resolution.. If I paid 5 lacs as tax let me atleast see some benefits worth 2 lacs that takes care of my concerns!

If the old tax regime is abolished, then we have to pray that the tax slabs for the new regime will be altered so that the middle class will not be taxed more.

[saket77]

Originally Posted by MadinMumbai

As citizens we are more than aware of our responsibilities. In fact, I am thrilled to see a 100 car cavalcade escorting a single mantriji, who, ostensibly, visits my area for my good (which I, being a doofus, am usually unaware about). This kind of tax enabled goodness that our babus and mantris practice makes me want to work harder, earn more, and pay more tax so that this 100 car convoy can be turned into one with 200 cars.

Any idea who finances the road you drive upon, the power grid that provides you electricity & all the infra around you?

[dass]

Originally Posted by saket77

Because unlike many other goods and services, this is basic social security product which in many countries the Govt takes care of. A country like India which doesn't provide such security to its tax paying population, should encourage people who buy such products. Adding 18% GST on top of it is absurd.

Completely agree. I know the Government in its infinite wisdom will not do anything that actually benefits the tax paying citizen, however this is the only wish list I have of this government. Reduce GST on insurance and health related products.

[deehunk]

I have no hope from our FM about cutting tax rates for middle-class people. At least we would have expected to raise the savings limit under 80C from its current slab to a higher value for people with higher incomes. This has been a long-standing expectation from middle-class people.

[ghodlur]

Only one expectation from budget - Remove current Minister of Finance with some level headed person who can bring some cheer to the tax payers.

[MadinMumbai]

Originally Posted by saket77

Any idea who finances the road you drive upon, the power grid that provides you electricity & all the infra around you?

I don't know. Is it possible it is the mantriji, using some kind of magic wand, who builds all our roads? BTW- I live in Maharashtra, the roads we have, with or without the largess of our political masters, are a travesty.

[deehunk]

Originally Posted by ghodlur

Only one expectation from budget - Remove current Minister of Finance with some level headed person who can bring some cheer to the tax payers.

That's impossible until 2029. IMO, this finance minister could not manage the resources and has only targeted all taxable segments since 2019.

[m8002?]

As a salaried tax paying citizen, I am mentally prepared to shell out more this year.

The babus and the neta dont care about the salaried tax paying class. With TDS in place, they can happily make you pay even 50 or 70% taxes. You have no choice but to pay.

They can do a lot many simple things to expand the tax net...but will not do it since it will impact the gravy train they are all sucking from.

[thanixravindran]

I specifically want the finance minister to explain the GDP growth fueled from private sector attributable to the cut in corporate tax effected few years ago. In my opinion, it is quite less as it is the Government that still drives the growth. I know it will not happen but too much exemption on business expenses still remain after the cut in corporate taxes. Hope this gets rationalized in budget that pushes the corporate tax collection higher to give some relief in personal Income tax.

Due to Trump threat, I believe some basic customs duty reduction will be there on import items from USA compensated by cess elsewhere (read China import) thereby maintaining revenue neutral stance from duty. Please take into account on the reduction of gold duty last year August. Yesterday's phone call already set that tone.

Last, though personal IT is expected to be taken up in second half of budget session with DTC, I hope exemptions under old tax regime reduced to set the direction and reduce litigation.

[saket77]

Originally Posted by MadinMumbai

I don't know. Is it possible it is the mantriji, using some kind of magic wand, who builds all our roads? BTW- I live in Maharashtra, the roads we have, with or without the largess of our political masters, are a travesty.

This thread is to discuss the budget 2025 and not a place to exhibit your frustration towards political system. Don’t want to be a part of a discussion with no substance, hence I’m out of here.

Thanks.

[coldice4u]

My wish for the budget would be to find a way to regulate private school, private hospital charges/fees and also real estate prices. Declare them as essential sectors etc if needed but make these 3 sectors unattractive for private investment etc. This can singularly help alleviate stress.

At the moment these 3 sectors are money spinners for their owners while causing undue stress to the its consumers.

[manojrajakrishn]

• A definitive decision about the waiver of long-term capital gains should be made in light of the current FII pullout scenario.
• Reducing income taxes is necessary to promote spending. The government ought to take this more seriously because it is serious.
• GST on fast-moving consumer goods should be reduced in order to reduce inflation.
• It is necessary to reduce the GST on health insurance and exempt senior folks from it.
• Although it seems unlikely that this will be done anytime soon, fuel should be subject to GST.

I'm hoping at least one of the expectations comes true