Former finance minister P. Chidambaram said on Thursday that it would be wrong to reduce personal income tax rates when the finances were in a mess and the better option was to cut goods and services tax (GST).
In a series of tweets, Chidambaram said: “Remember there was a time when the highest personal income tax rate was brought down to 30% with no surcharge? Sadly, under the BJP Government there can be no return to those rates because the BJP has messed up the country’s finances. Besides, if the FM cuts personal income tax rates (following the cut in the corporate tax rate), it would be wrong at this point of time and will not serve the purpose of reviving demand.”
The Congress MP suggested that the GST rate should be slashed. “But the Government has tied itself in knots that it cannot find a way to cut the GST rates. The country’s finances are in such a mess that whatever the Government does now will have negative consequences.”