Even as the industry is waiting with high hopes of a budget with potential tax breaks, Prime Minister Narendra Modi on Friday called for an ideological change among the corporate sector, and also indicated that the rich could be taxed in the forthcoming session.
“We must be pragmatic…I am not to eliminate subsidy but to rationalise and target them,” Prime Minister Modi said while delivering the key note address at the Global Business Summit, hosted by The Economic Times. He added that his government would still eliminate some of them but not those that benefit the poor of the country.
For instance, the Prime Minister wondered the choice of words by experts. When the farmer is handed out it is called subsidy, but when the same thing is given to the industry it is called as an incentive by experts. “We must ask ourselves whether there difference in the language reflects the difference in our attitude,” he said.
As an example, Prime Minister Modi said that the country loses more than Rs62,000 crore due to benefits extended to the corporate sector, exemption of dividend tax, and double tax avoidance agreements. “These are rarely refered by those who want reduction in subsidies,” Modi said.
At the summit, the Prime Minister enlisted the achievements of his NDA government since taking charge in May 2014, and elaborated on the various measures the government is taking to ensure that the policies are more “populist” and not just “popular” and aimed at improving the lives of the common man. “I am confident we will reach our destination,” Modi added.