Ahead of Budget 2020 which will be presented by Finance Minister Nirmala Sitharaman on February 1, sources have indicated that the government may increase import duties on as many as 50 items as the administration eyes to revive the economy after IMF trimmed India’s growth projection.
Finance Minister Nirmala Sitharaman, who will be presenting her second union budget may announce an increase in import duties on 50 items including electronic goods, chemicals, handicrafts, wooden furniture, jewellery, etc, according to a report in live mint.
The government might hike 5-10% on tariff duties on imported products, as per sources.
69% want tax free income to be hiked to Rs 5 lakh in budget 2020
Meanwhile, in the run-up to the Union Budget on February 1, a survey by LocalCircles has found that 69% of respondents want tax-free income to be increased to Rs 5 lakh. Since the Government announced the corporate tax rate cut in September this year, people are hoping that the Budget 2020 will bring some relief for the individual tax-payers as well.
Currently, for individuals under 60 years of age, there is zero tax up to annual income of Rs 2.5 lakhs. Citizens were asked how should the government change this going forward.
Sixty-nine per cent said this should be increased to Rs 5 lakh while 18 percent said it should be increased to Rs 3 lakh. 7% said it should be kept at Rs 2.5 lakh only and 4% said it should be reduced to Rs 2 lakh instead.
According to the survey, citizens want the government to not just provide a tax cut via Budget 2020 but also provide an incentive to spend the same. LocalCircles conducted a large survey and received more than 80,000 responses from across the country.
When asked what sector according to them should get top allocation in budget 2020, 30% said environment (air, water, waste management etc.), 26% said infrastructure, 16% said agriculture, 8% said rural development, 6% said skilling, while 11% said women and child safety.
Increasing consumer spending will be a key to bringing the economy back on track. To a question on what is the best way for the government to boost consumer spending via Budget 2020, 28% said just a tax rate cut across the board would do the trick while 29% said the Government should provide a tax cut across the board and incentivise the tax payer to spend it within a year.