New Delhi [India], February 1 (ANI): Congress MP Karti Chidambaram welcomed the tax cuts in the Union Budget on Wednesday and said that it would be the best way to boost the economy. However, his colleagues exhibited 'difference of opnion'.
"I am a believer in a low tax regime. So, any tax cuts are welcome because giving more money into the hands of the people is the best way to boost the economy," Karti Chidambaram said talking to ANI.
Finance Minister Nirmala Sitharaman declared five major announcements in the new tax regime including an increase in the income tax rebate limit from Rs 5 lakh to Rs 7 lakh stating that the new tax regime will now be the default tax regime.
She also proposed to change the tax structure in this regime by reducing the number of tax slabs to 5 and increasing the tax exemption limit to Rs 3 lakh.
On personal income tax, the FM announced that "Tax for income of Rs 0-Rs 3 lakh is nil, for income above Rs 3 lakh and up to Rs 5 lakh will be taxed at 5 per cent, for income of above Rs 6 lakh and up to Rs 9 lakh will be taxed at 10 per cent and for income above Rs 12 lakh and up to Rs 15 lakh to be taxed at 20 per cent and above 15 lakh at Rs 30 per cent."
However, Congress leader K Suresh termed the budget "pro-corporate" and said that it has fulfilled all the interests of Gautam Adani and the common man has been ignored.
"Budget 2023 is a pro-corporate budget. All interests of Adani are fulfilled in this budget, but the common man has been ignored. This budget is for Adani, Ambani, and Gujarat," K Suresh told ANI.
Meanwhile, Gaurav Gogoi also said that the Budget did not provide any solution to inflation and unemployment and asserted that the tax abate is like a "drop in the ocean" for the middle-class people.
"No solution to price-rise, inflation, unemployment. Poor got just words and rhetoric. The budget only benefits the big industrialists. Tax rebate up to Rs 7 Lakhs is insignificant considering the inflation and price-rise, it is like a drop in the ocean for the middle-class strata," MP Gaurav Gogoi said.
During her budget speech, the Finance Minister said that the Indian economy has increased in size from the 10th to 5th largest in the world in the past nine years and highlighted the achievements of Prime Minister Narendra Modi-led Central government since 2014. She said that the per capita income has more than doubled to Rs 1.97 lakh.
Sitharaman started her speech in the Parliament on Wednesday wherein she termed the Budget the "first budget in Amrit Kaal".
"This is the first budget in Amrit Kaal. We envision a prosperous and inclusive India," Sitharaman said starting the Budget speech, adding, "Despite a time of challenges, the Indian economy is heading towards a bright future."
Sitharaman, before presenting the Union Budget met the President on Wednesday at the Rashtrapati Bhavan following a Union Cabinet meeting headed by Prime Minister Narendra Modi.
The budget session that began on Tuesday with the President's address will take place in 27 sittings till April 6 with a month-long recess to examine the budget papers.
This budget is the last full-fledged Union Budget of the Modi government before the 2024 Lok Sabha elections. (ANI)