Hopes on reorientation of tax slabs

The common man expects lowering of tax burden, reduction of interest rates for home loans and prices of essential commodities

Hyderabad: The common man expects lowering of tax burden, reduction of interest rates for home loans and prices of essential commodities. The Hans India spoke to a cross-section of people on their expectations. P Ajay Kumar, account executive, said the government should increase the exemption limit of income tax from Rs 2.5 lakh to Rs 5 lakh at least.

The government should also take measures to cut down the interest rates further so that people can go for housing loans.

Arun Kumar Agarwal, member of Hyderabad Kirana Merchant’s Association, expects the budget to be a good one for the middle class. “The government should increase the exemption limit of income tax and make it reasonable so that the people come on their own to pay the taxes honestly.

The government should make sure the purchasing power of the people increases. This would ensure the money is distributed to each and every section,” he said. He further added, “We expect the budget to be encouraging for the business sector as the demonetisation has helped banks in getting money. Banks can now give loans to new entrepreneurs and farmers with lesser interest.”

Expressing hope now after the construction business took a nosedive post demonetisation, Abdus Salam from the real estate sector says, the civil engineering works were affected particularly after demonetisation. I hope that the new budget will provide much scope for construction activity, as development is always linked to construction activity.”

Women folk especially homemakers feel that essential commodities like pulses, rice and dal should be reduced. Dr D Narsimha Reddy, social activist said it was likely that the government would come with the budget of increased service taxes, while reducing income tax.

“While the reduced income tax will be beneficial to middle class, the increase in service tax will only add to the woes of common man, as prices of essential commodities will increase. The government is focused on generating revenue, even as the oil prices are going up,” he said.

Jewellers feel that the government should take measures to see that the business which had taken a nosedive opens up. They also expect that the import duty on gold would come down and banking transactions would be made easier.