Ahead of rolling of the Union Budget, the ruling BJP has suggested tax relief to the middle-class by increasing standard deductions and providing benefits to small and medium businesses by lowering raw material cost.
BJP specialist in economic affairs and National Spokesman Gopal Krishna Agarwal said the party has given proposal during meeting with the Finance Minister Nirmala Sitharaman on Wednesday.
Talking to The Pioneer, Aggarwal said the Union Budget will be presented on February first and hoped the suggestions on reducing income tax and raw material prices would provide relief to the middle class and small business respectively. He pointed to the rise in commodity prices.
The middle-class would benefit if the standard deductions are broad-based.
As unprecedented Coronavirus pandemic did not allow the winter session of the Parliament, the government hopes that the budget session in January would make up for the winter session.
In the background of economic squeeze caused by the pandemic, the budget 2021-22 may involve special economic announcements for the segments particularly impacted by an year-long lockdown.
As the Modi-Government had earlier announced some succour to poor in terms of free ration and loan relief to businessmen, the BJP has proposed that some tax relief to middle-class too would make a happy economic proposition.
“The middle-income group is feeling a lot of pinch, and they need some support” said Agarwal.
“Incentivising consumption by them would also help the industry,”I can say the Budget will take care of the middle class.”
Last time, the Budget had maintained the status quo without making any major change that would have effectively benefited the tax-paying middle-class.