Rates likely to dip as tax net expands in the long run: Venkaiah Naidu

Naidu urged all political parties to 'have a constructive debate' during the Budget Session

Union Urban Development Minister Venkaiah Naidu said on Tuesday that with more people coming into the tax net, rates are "automatically likely to come down".

Talking to reporters before the start of the Budget Session in the Parliament, Naidu said that demonetisation was a radical step taken by Prime Minister Narendra Modi and that its after effects will be "very good".

"In the long term, the country will have a sound economy. More and more people are coming into the tax net. Once that happens, the revenue will increase and the tax rates are automatically are likely to come down," Naidu said.

"These are good signs for the economy and poor people and tax paying people will be more than happy," he added.

Hoping for cooperation from all political parties during the Budget Session, Naidu urged them to "use this occasion to have a more constructive debate".

"I hope that we will have a meaningful session... I repeat what President said: discuss, debate, decide; do not disrupt."

Asked about former Prime Minister Manmohan Singh's remarks about Indian economy not being in good shape, he said: "During Manmohan Singh's period, the economy was not in good shape. We have inherited fiscal deficit, revenue deficit, trade deficit, current account deficit and above all, trust deficit."

"From there, we have improved and taken the country to 7 per cent growth, lowest inflation, highest foreign exchange. What else do you require?"

"Fruits of development are for the first time reaching the poor because of the pro-poor developmental initiatives taken by the Prime Minister," he said.

Singh on Monday released a document detailing the current scenario of the Indian economy, which he said was not in good shape.