• search
For Quick Alerts
For Daily Alerts

Cut indirect tax rates, not direct ones: Chidambaram

By Ians

Kolkata, Jan 28: In view of the "sufferings" of the common people resulting from demonetisation, former Union Finance Minister P. Chidambaram on Saturday suggested that the Centre should cut indirect tax rates to mitigate the hardships people are facing now.

Cut indirect tax rates, not direct ones: Chidambaram

Chidambaram said: "The correct tax to cut is the indirect taxes. You should cut service tax, excise and customs duty. Any cut in the indirect taxes will benefit millions of people." "A direct tax cut will only benefit a very small number of people - not more than 25-50 lakhs of people. Indirect tax cut will benefit crores of people in the country and stimulate the economy," he said.

"What you have to do now is alleviate sufferings and misery of the masses of this country," he said adding that demonetisation has hit the economy by at least one per cent of the GDP.

He suggested that the present government must stick to the path of fiscal consolidation which means the fiscal deficit must be less than three per cent.

"Current account deficit must be 1-1.5 per cent and CPI inflation must be below five per cent. Fiscal stability is very important. Are we going to deviate from the path of fiscal consolidation and fiscal prudence?," he asked. "If I was the Finance Minister today, I would have cut indirect taxes," he said.

Investments have been hit due to demonetisation and wide spread accesses of tax enforcement departments, he added.


For Daily Alerts
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more