Progressive taxation will help bring down income inequality
The govt’s focus on rationalizing corporate tax rate is the need of the hour for Indian economy
In a dynamic economy, some sectors may need to be incentivised.
The Union budget for FY20 has set forth the government’s vision for the next five years, with a focus on investment. The goal of making India a $5 trillion economy is a realistic one. We look forward to seeing the specific economic strategies that are being worked out by the government to attain the targets. On rationalization of taxation, the priority, rightly, has been accorded to extending the lower 25% corporate tax rate to all companies with annual sales up to ₹400 crore that the finance minister said would cover 99.3% of companies in the country. Making corporate tax rate more competitive has to be a top agenda as it will make India more attractive as a destination for doing business. I hope this can be reduced further and extended to all firms.