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Since the last couple of months, the whole world is under the effect of an economic slowdown. While many sectors are losing money and many people are losing jobs. Governments across the world are taking steps to strengthen the industries.
Today, Finance Minister Ms. Nirmala Sitharaman did a press conference to announce some of the measures Indian government will undertake.
- For speeding up the cash flow in the economy, the government will scrap surcharge on foreign portfolio investors.
- Moreover, the burden on companies in rules and compliance will be lowered so as to make it easy to carry out business.
- The government will be reviewing the income surcharge on people in the tax slab of 2 Crore and above. Hence, they will be able to buy a car which in turn will revive the automobile sector.
Speaking about FPIs, Rajesh Gandhi, Partner at Deloitte India said,
“Tax rates for FPIs will come down 4% to 7% and remove the anomaly created by Budget 2019.”
Apart from that, the Government has also taken some measures earlier in order to revive the growth. Such as,
- Releasing Rs. 70,000 Crore amount in Public Sector Banks through recapitalization bonds. This will improve the lending capacity of the banks.
- Interest rates are lowered for benefitting the people who have taken loans from the bank.
- A committee is formed in banks to check whether the lenders are lending money to appropriate peoples or not.
However, there is not any possibility of tax cuts under GST. Since all such decisions are in the hands of GST Council where Government is having no bandwidth on them.
It is noteworthy that GST rates are still hurting the backbone of leading companies like Parle.
We hope that we see some more measures from the government to give a boost to our economy.