Tax burden has reduced due a rational system of GST, Income Tax and Corporation Tax: PM Modi

Prime Minister Narendra Modi addressed stakeholders in the financial services sector in a post-budget webinar on March 7, saying the tax burden has been reduced due to the reasonable tax framework in place.

Modi said that the goods and services tax (GST), as well as reductions in income tax and corporation tax, have greatly reduced India’s tax burden. He claims that as a result, tax collection has improved.

According to the Prime Minister, this has resulted in increased revenue collection. Gross tax income was approximately Rs 11 lakh crore in 2013-14, and it is expected to increase by 200 percent to Rs 33 lakh crore in 2023-24. From 2013-14 to 2020-21, the number of individual tax returns submitted increased from 3.5 crores to 6.5 crores.

“Paying taxes is a duty that is directly tied to country building. “The increase in the tax base demonstrates that people have faith in the administration and think that the taxes they pay are spent for the public good,” the Prime Minister remarked.

Modi emphasised that Indian talent, infrastructure, and innovation have the potential to propel the Indian financial system to the top. “In the era of ‘Industry 4.0,’ platforms established by India are becoming models for the rest of the world,” he said, mentioning GeM and digital transactions as examples.

“RuPay and UPI are not simply a low cost and highly secure technology, but it is our identity in the world. There is a lot of room for creativity. “UPI should become a global instrument of financial inclusion and empowerment,” he stated. The Prime Minister urged that the country’s financial institutions work closely with fintechs to expand their reach.

The Prime Minister stated that his government’s financial inclusion measures have brought millions of people into the official financial system. He pointed out that the government had made Mudra loans totaling more than 20 lakh crore rupees without a bank guarantee.

He further stated that the PM Swanidhi Yojana provided assistance to over 40 lakh street vendors and small retailers for the first time. He urged stakeholders to reengineer all procedures in order to decrease costs and boost the speed with which finance reaches small entrepreneurs.

He noted that the financial system must continue to support MSMEs by providing adequate financing.

Commenting on ‘Voice for Local,’ Modi stated that it is not a choice but a vision of self-reliance that is a national responsibility. “Our exports of goods and services have reached an all-time high. This suggests expanding opportunities for India,” he added, and he urged stakeholders such as organisations and Chambers of Commerce to take on the role of promoting local artisans and businesses up to the district level.