'PM Modi fully supported tax cut idea...': Sitharaman
What's the story
Finance Minister Nirmala Sitharaman has said Prime Minister Narendra Modi was fully on board with the idea of slashing taxes, but it took time to convince the bureaucrats.
In an interview with news agency PTI, she said the PM was very clear he wants to do something.
"It is for ministry to have had the comfort level and then go with the proposal," she added.
Tax reform
Sitharaman unveils new tax regime in 2025 budget
The finance minister unveiled the new tax regime in her budget speech on February 1, announcing no income tax would be payable on annual incomes up to ₹12 lakh.
This landmark reform is aimed at giving relief to the middle class and simplifying the income-tax bill.
The revised bill aims to enhance simplicity and clarity by cutting unnecessary chapters and words, making it easier to understand for taxpayers and administrators.
Budget praise
PM Modi hails new budget as 'force multiplier'
PM Modi praised the new budget, calling it a "force multiplier" that puts citizens' financial health before government revenue.
He described this budget as a giant leap in India's journey, reflecting the dreams of 1.4 billion Indians.
"Usually, the focus of the budget is on how the government treasury will be filled... But this budget is exactly the opposite," he said in a video address.
Election impact
Tax relief may sway middle-class voters in Delhi elections
The tax relief is expected to enhance middle-class spending power and may sway votes in the February 5 Delhi Assembly elections.
Political analysts believe the Bharatiya Janata Party's (BJP) move could lure middle-class voters, who have been inclined towards the Aam Aadmi Party (AAP) for its anti-corruption agenda and subsidies.
Despite AAP chief Arvind Kejriwal's attack on BJP's past 'tax terrorism,' BJP still enjoys a strong support among upper-middle class and trading community in Delhi.