• No tax on incomes up to ₹12 lakh
• ₹75,000 standard deduction for salaried workers
• Govt sees this as a boost for demand
• India’s per capita income: ₹1.7 lakh
• Private consumption per capita: ₹1.2 lakh
• ₹12.75 lakh salary is 10.6x average consumption
• Govt to forgo ₹1 trillion in revenue
• Indirect taxes may rise, hitting lower-income groups
• Narrowing the tax base could be risky
• A broad tax base is better for the economy
• Even small direct taxes create accountability
• Shift in burden to indirect taxes is regressive
• Tax cuts don’t guarantee spending
• Corporate tax cuts earlier didn’t spur investment
• Risk of inflation in constrained sectors
• Govt plans a new tax code
• Aim: Simplify laws & expand the tax base
• Balanced reform is key for long-term growth