Need to keep govt revenue in mind, says FM Sitharaman on tax cuts

Finance Minister Nirmala Sitharaman said that while she understands the plight of the salaried class amid coronavirus, she also needs to keep in mind the government's revenue. Her comment comes as experts were anticipating tax concessions for the middle class in the Rs 20 lakh crore package after Prime Minister Narendra Modi's address to the nation. He had said that the economic stimulus package is designed to benefit the taxpayers among others. Sitharaman said that she understands that given how revenue generation has been impacted, tax concession will affect the devolution.

In an interview to The Economic Times, the minister said that every tax-related decision has bearing on the revenue and affects the states through devolution. The minister was responding to a question on how the salaried class that is facing salary cuts and job losses have felt that the Rs 20 lakh crore economic stimulus offers them nothing. "I'll have to see how I can do it because today, every tax-related decision I take, you are well-aware has a bearing on the revenue of the Union government, but post that, through the devolution, affects the states, too," she said.