After presenting the Union Budget 2023, Finance Minister Nirmala Sitharaman said that the new taxation regime, while offering greater incentives for the middle class, is not aimed at compelling people to move from the old regime to the new tax regime. “This country has been waiting for the direct taxation to be simplified, to become easy in terms of compliance. Therefore the new tax regime that we brought 2-3 years ago, has now got greater incentives and attractions so that people can unhesitatingly move from the old to the new. We are not compelling anyone. But the new one is now attractive as it gives greater rebates,” said Sitharaman during a press conference.
The finance minister said that the government has brought fresh changes to the new taxation regime and it has simplified it and nicely broken down the tax slabs. She added that Budget 2023 has aimed to rationalize customs duties, to ensure personal income tax benefits for the middle class. The Finance Secretary added that around 60 per cent of the tax collection is coming from the exemption free tax regime. He added that the move is from higher tax rate inducing certain tax avoidance devices to a low marginal tax rate with less opportunities for tax avoidance.
Further, the finance minister said that the Union Budget 2023 has “beautifully balanced” both growth considerations since it gives a big leg-up to capital investment and also attends to MSMEs as they are the engine of growth. “Capital investment has never before seen double digit investment announcements – Rs 10 lakh crore which includes Rs 1.3 lakh crore being given to states is going to give a big leg-up to capital investment.
Talking about the government’s focus on the digital economy, the FM said, “We are looking at a futuristic fintech sector, people will be trained through Industrial Revolution 4.0, we are trying to unleash the digital economy in various walks of life.”