Tax cuts: Will it help common man?
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Several taxes have been cut but the big question is whether they will really make a difference to the common man. “The state has a tax base of Rs 27000 crore while the government has reduced taxes by Rs 150 crore, which will make no difference to the average citizen. The government could have taken aggressive developmental measures and provided more tax cuts. This is a lack lustre budget which lacks vision and direction,” said Mohandas Pai, Chairman, Manipal Global Education Services and former HR head, Infosys.
“Most of the tax cuts are not related to the common man. Cutting tax on inexpensive articles like readymade garments, does not alter anything,” said Ashwin Mahesh, faculty member, Centre for Public Policy, IIM-B. “Karnataka, now, has the lowest tax to GSDP ratio among all states in India. With the latest budget, this ratio stands at 14 while a majority of states have a ratio of 14.5.
“Till last year, Karnataka had the highest (13.5) tax to GSDP ratio. This is a balanced and investor friendly budget,” said J.R. Bangera, president, FKCCI. “No new taxes have been levied that affect the common man. There was no scope for increasing taxes as agriculture nor industry is doing well,” Mr Bangera added. The reduction in stamp duty on sale deeds from 6% to 5% will be a big relief for buyers considering the high property prices in Bengaluru. Reduction of stamp duty to 1% (subject to a maximum of Rs 15 lakh) on the market value of the property in respect of Joint Development Agreement, will help farmers retain control of their land. Instead of buying land from farmers, people would prefer to jointly develop the land.
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