“Direct Tax should be reduced. If the Income Tax exemption limit is raised from Rs 2 lakh to Rs 5 lakh, three crore people will save Rs 24 crore which will lead to a small impact of 1 to 1.5 percent of National Tax Fund,” Jaitley said.

Jaitley claimed that the NDA government led by Atal Bihari Vajpayee kept the rate of interest at seven to eight percent, which the Congress-led UPA government raised to 13-14 percent.

"Due to this, Trade and Industry are running under loss and closing down, and production has become costly. That is why countries like China and Thailand are moving ahead of India,” he said.

“The savings of Rs 24 crore in the pockets of ordinary person by reducing ceiling on Income Tax will lead to increased purchase which in turn will lead to increased VAT and Excise Duty thereby increasing the Revenue,” Jaitley added.


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