Current tax slabs to stay: Chidambaram

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Budget package evades most of needy farmersBudget targets politics & progress: Moody’sUpset with Budget, Nath to meet PMCurrent tax slabs to stay: Chidambaram

After giving bonanza to income-tax payers by changing the slabs, Finance Minister P Chidambaram today said the next step should be removal of surcharges if the revenue buoyancy continued.

"Last time anyone has set the tax rates was 1997. This time we have set the tax slabs. I am reasonably confident that these tax slabs are going to stay for long, long time, we have brought moderate taxes and reasonable tax slabs," Chidambaram told TV channels.

The individuals with income of more than Rs 10 lakh and corporates pay surcharge at the rate of 10 per cent and there was a Strong demand from corporate houses to do away with surcharges.

"If revenue buoyancy continues, I am sure the next Finance Minister, which I am sure would be from the Congress party, will begin to remove the surcharges. I think surcharges should go... may be in two steps or four steps," he said.

Chidamabaram had changed the personal income-tax rates to 10, 20 and 30 per cent in 1997-98 Budget, which was touted as "dream budget". Again it was Chidambaram who restructured the tax slabs in his Budget yesterday.

Asked whether general elections were in mind while making this Budget, he said, "every year there are elections in the country, 2006 was an election year, 2007 was an election year and 2008 is an election year. I have presented my fifth Budget...."

According to schedules, elections are in May, 2009.