Finance Minister Nirmala Sitharaman Responds to Social Media Request for Tax Relief for Middle Class
Recently at a social media interaction, Union Finance Minister Nirmala Sitharaman addressed the concern of a user who had raised the question about the fiscal pressure on India's middle class. For decades now, the middle class of India has been the backbone of the country, contributing highly in terms of taxes and spending. The user tagged Sitharaman on X platform and humbly requested some relief for this group as they face severe economic problems, especially with income tax and GST burdens.
Sitharaman acknowledged the concern of the user and appreciated her input. She said that the government listens to the people's voices and assured that endeavors are on to face their problem. "Your input is valuable," she said, underlining efforts by the government to facilitate the middle class and help them come out from the other side of these problems.
The middle class constitutes a small fraction of the people in India, 2%, but they play an important role in India's system of economy. But this is the part of population that feels the burn of such levies like income tax and GST on their savings and expenditures. Taxation upon the middle class has been an issue of discussion for the last many years. Many are demanding relief.
The Union Budget for 2024 has helped alleviate the impact on the salaried classes, especially the middle class. For instance, the standard deduction has been enhanced to Rs 75,000 from Rs 50,000, which saves an extra Rs 17,500 for taxpayers. So far as relief is concerned, many feel there is more that could be given presently, with the rising cost of living being currently the world scenario.
According to the data of 2023, it has been reported that only 1.6% of the people of India, which is about 2.24 crore individuals only, paid taxes in 2022-23. However, the government still focuses more on direct taxes - income tax and corporate tax. Therefore, the reduction of indirect taxes gives a refreshing perspective on the country's future.
Response of the government regarding middle-class concerns coupled with current initiatives posits that the government is unlikely to downplay its efforts towards alleviating the woes of the middle class as the 2024 elections approach.
