Budget 2024-25: Motilal Oswal Financial Services Chairman and Co-Founder Raamdeo Agrawal believes that there should be no income tax on people with an annual income of up to Rs 12 lakh. Agrawal said that the government needs to take steps to increase consumption in the country. He said that one way to do this is to put more money in the hands of taxpayers
Budget 2024-25: Motilal Oswal Financial Services Chairman and Co-Founder Raamdeo Agrawal believes that there should be no income tax on people with an annual income of up to Rs 12 lakh. In a conversation with our partner CNBC-TV18, Agrawal said that the government needs to take steps to increase consumption in the country. He said, “One way to do this is to put more money in the hands of taxpayers. Those with annual income up to Rs 12 lakh should not have any contact with tax officials.” He said that increasing the exemption limit will also help in settling lakhs of tax cases piling up in tax offices. Here are edited excerpts of the interview:
Question: What are your expectations from Budget 2024-25?
Answer: I hope the government will take some steps to promote consumption. Look, if you want to increase the capex of the private sector, then the government is doing everything for it. If you look at the Goods and Services (GST) collection figures for this month, if this trend continues and it comes down to 6% and 5%, then you will have a problem. Because GDP is growing at the rate of 10-12%, while GST is growing at the rate of 7%. It is expected that due to elections and scorching heat, this has happened for the first time, and next month the growth of GST collection will be fine. But if it does not recover, then there is a problem with consumption.
So, you have to focus on increasing consumption. Because Indian entrepreneurs are very smart. As soon as they feel that consumption is increasing, they will immediately start investing. If you want a burger, people will supply 1,00,000 types of burgers. If you want a car, cars from all over the world will be available. You just have to indicate where the consumption is happening and investment will automatically come there. Right now the infrastructure is such that only the government can do it.
Q: So you are indicating that there should be some relief in income tax?
A: This is a good way to increase consumption. Put more money in the hands of taxpayers. You have no control over those who are not paying taxes, but you can reduce taxes on those who are paying taxes. I would say that there should be no tax on income up to Rs 12 lakh.
Q: Usually when the government takes such a step, the stock market falls. Market experts say that this is a populist measure, this is a very populist government.
Answer: You do not make a budget for the stock market. The stock market has its own thinking. So, forget about the market. You cannot make it keeping the market in mind. You have to make a budget keeping in mind what is good for the country.
