Press Trust of India
In anticipation of the upcoming budget, the Confederation of Indian Industry (CII) has suggested that income tax relief for individuals in the lowest tax slab should be considered. This proposal aims to provide financial respite to low-income earners, potentially boosting their disposable income and overall economic well-being.

Key Suggestions
Tax Relief for Low-Income Earners:

The CII advocates for reducing the tax burden on individuals in the lowest income bracket.
This measure is expected to enhance disposable income for low-income households, enabling them to manage living expenses more comfortably.
Boosting Economic Activity:

By increasing the purchasing power of low-income earners, the proposed tax relief could stimulate consumer spending.
Higher consumer spending can contribute to economic growth, particularly benefiting sectors reliant on domestic consumption.
Enhancing Financial Inclusion:

Providing tax relief aligns with the broader goal of financial inclusion, ensuring that economic benefits reach all sections of society.
This move could also encourage savings and investments among low-income groups, fostering a culture of financial security.
Rationale Behind the Proposal
The CII’s recommendation comes in light of the economic challenges faced by low-income earners, especially during the pandemic. The proposed tax relief is seen as a necessary step to alleviate financial stress and support the economic recovery of this vulnerable segment of the population.

Potential Impact on the Budget
If implemented, the proposed tax relief would represent a significant shift in fiscal policy aimed at equitable economic development. It underscores the government’s commitment to inclusive growth and addressing income disparities.