Home / News / India /  New tax regime to have adverse impact on taxpayers' savings, claims Swadeshi Jagran Manch

The affiliate of the Rashtriya Swayamsevak Sangh (RSS), the Swadeshi Jagran Manch (SJM) has said that the new income tax regime may give relief to the taxpayers in terms of ease in filing returns with a lower tax burden but it can have an "adverse impact" on their savings. The SJM urged the Centre to tweak the new tax regime to promote savings by the middle class.

"As expected, the income tax burden in the new tax regime has been reduced for the middle class and for the ultra-rich, which will have an impact on the total revenue of 37,000 crore," SJM co-convenor Ashwani Mahajan said in a statement.

"The Swadeshi Jagran Manch believes that the new income tax system may give relief to the taxpayers in terms of ease in filing returns with lower tax burden but it can have an adverse impact on the savings being made by income-tax payers," he said.

The SJM impresses upon the government to "tweak" the tax regime to promote saving by the middle class, he said, adding the middle class is an important source of government borrowing and capital formation.

Finance Minister Nirmala Sitharaman presented the Union Budget for 2023-24 in Parliament on Wednesday.

The SJM termed the Union Budget "growth-oriented" and welcomed various provisions made in it but underscored the "lack of sufficient efforts" on the part of the government needed to promote manufacturing in India.

India is witnessing a trade deficit and "unprecedented imports" from China today but the same could not catch sufficient attention of Finance Minister Nirmala Sitharaman, Mahajan said, demanding that the Centre put a curb on imports from China by increasing tariffs.

"We urge the government to increase tariffs on products where there exists sufficient excess capacity. This will curb import from China and promote manufacturing in the country," he said.

Mahajan said it was expected that there will be an emphasis on manufacturing in the Union Budget for 2023-24.

"The Swadeshi Jagran Manch expresses its dissatisfaction over the lack of sufficient efforts taken to promote manufacturing," he said, adding the government should have hiked tariffs on products, "both final as well as intermediate".

*With agency inputs

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