New Delhi: Finance minister Nirmala Sitharaman on Friday said the government’s intent was to respect wealth creators and it was not working to prosecute them, a view that Prime Minister Narendra Modi had shared in his 15 August speech.
“The intention of the government is not to go on the prosecution route," Sitharaman said, adding, the Union government is going for the more humane route.
She said violation of the corporate social responsibility (CSR) law will not be treated as a criminal offence, and will be a civil liability instead. She also said the issue of income tax orders, summons will now go through a centralized system beginning 1 October.
The government respected wealth creators and was simplifying tax reforms to improve the ease of doing business, she added.
On 15 August, Modi had said that “wealth creation is a great national service. Let us never see wealth creators with suspicion. Only when wealth is created, wealth will be distributed. Wealth creation is absolutely essential. Those who create wealth are India's wealth and we respect them".
She said single clearance for water and environment for small firms and fixed term employment have been allowed for flexibility in hiring. Employees' state insurance contribution has been curtailed to 4% from 6.5% earlier, effectively lowering employee cost in companies.
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