LTC cash voucher to festival advance: Centre looks to boost consumer demand
New Delhi, Oct 12: From LTC cash voucher to festival advance, the Union Government has unveiled plans to boost consumer demand.
Under the LTC cash voucher scheme, the government employees can opt to receive cash amounting to leave encashment plus three times ticket fare to buy items which attract of GST of 12 per cent of more, Union Finance Minister, Nirmala Sitharaman said. Only digital transactions will be allowed and the GST invoice must be produced, Sitharaman also said.
Needs of the poor and weaker sections have been addressed in the Aatma Nirbhar Bharat package, supply situation has improved, but consumer demand needs to be given a boost, Sitharaman also said.
Indications are that savings of the government and organised sector employees have increased. We want to incentivise such people to boost demand for the benefit of the less fortunate, the finance minister also said.
Tax concessions for LTC tickets will be available for state government and private sector too. If they choose to give such facility, these employees too can benefit, Sitharaman also said.
For the Central government, the estimated cost of the LTC cash voucher scheme is Rs 5,675 crore and for PSBs and PSUs, it would be 1,900 crore.
On a conservative basis, we expect the LTC Cash Voucher Scheme to generate additional consumer demand in the range of Rs 28,000 crore, Nirmala Sithararman also said.