CII proposes cut in income tax, public spending

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CII proposes cut in income tax, public spending

The Confederation of Indian Industry CII has proposed a cut in personal income-tax and a bump in public spending in its pre-budget wish list. The industry body suggested raising capital spending to 3.3 -- 3.4% of GDP in FY 24 from 2.9%, with an aim to increase it further to 3.8 -- 3.9% by FY 25. According to Sanjiv Bajaj president, CII, a fresh look at the capital gains tax is needed to address its complexities and inconsistencies, and it needs to revitalise the investment as well as consumption demand. He suggested that personal income tax rates be trimmed to give more money to consumers. The government should consider a reduction in the rates of personal income tax in its next push for reform as this would increase disposable incomes and revive demand cycle, Bajaj was quoted as saying in a statement from the CII on Sunday. There has been increasing outlays on green infrastructure along with traditional infrastructure like roads, railways and ports. For financing infrastructure, CII has proposed a deepening of corporate bond markets, including infrastructure bonds, prioritising a package for large play of urban bonds.