New Delhi: The ruling Bharatiya Janata Party (BJP) today promised to reduce income tax rates if it is voted back to power again in the Lok Sabha elections. In its manifesto, released by BJP president Amit Shah, Prime Minister Narendra Modi and Home Minister Rajnath Singh, the party said it strives to ensure reduced tax rates.
"After providing major tax relief in the recent budget, we are committed to further revise the tax slabs and the tax benefits to ensure more cash and greater purchasing power in the hands of our middle-income families," the BJP manifesto said.
It highlighted that the party strives to ensure reduced tax rates, higher tax collection, greater compliance and ensuring a stable taxation regime.
In its last budget, an interim one, the BJP-led NDA government had announced significant tax reliefs for the middle class for financial year 2019-20. The budget had not only allowed full tax rebate for those in the ₹5 lakh bracket but also increased standard deduction for the salaried class from ₹40,000 to ₹50,000.
"Since our economic model is based on entrepreneurship and innovation, we commit to simplifying and lowing tax rates," the BJP manifesto said adding that its economic policy has been guided by the principle of lowering the tax rate and improving compliance; thereby broadening of the tax base.
"With improved compliance and increased tax base, the tax to GDP ratio has reached 12%, highest in the recent past, up from 10.1% in 2013-14. This increased revenue has been deployed for benefits to the poor and creation of infrastructure at an unprecedented level. We will continue with our policy in the similar manner – lowering of tax rate thereby rewarding honest tax payers and improving compliance," the BJP said.