Nirmala Sitharaman on Tax Burden: Simplified Regimes, Middle-Class Relief & GST Clarity

In a recent interview with Times Now, Finance Minister Nirmala Sitharaman addressed concerns regarding the tax burden on the middle class, emphasizing her personal connection to these issues by stating, “I also come from a middle-class family.”

Government efforts to simplify the tax system

Sitharaman highlighted the government’s efforts to simplify the tax system, particularly through the introduction of a new tax regime featuring lower rates and fewer exemptions. This initiative aims to provide taxpayers with a more straightforward and equitable taxation process. She noted that many individuals had expressed a preference for a simpler system without numerous exemptions, prompting the government to implement this alternative.

GST misconceptions clarified

Addressing misconceptions about the Goods and Services Tax (GST), the Finance Minister clarified that essential items were not taxed for the first time under GST. Prior to GST, states levied taxes such as VAT or excise on these goods. The implementation of GST unified various tax rates across the country, creating a consistent taxation framework. Sitharaman emphasized that the perception that GST introduced new taxes on everyday items like soap, oil, and combs is incorrect. In fact, she asserted that GST has led to a reduction in taxes on daily necessities, supported by data indicating lower tax rates on these items post-GST implementation.

Government plans for 2025 budget

These statements come ahead of the 2025 budget, amid public calls for tax relief. Reports suggest that the government is considering reducing income tax for individuals earning up to ₹1.5 million annually to alleviate the financial burden on the middle class and stimulate consumption. ​​

Sitharaman’s remarks underscore her awareness of middle-class challenges, reinforced by her personal background. She stated, “I also come from a middle-class family that depended on salary. Do you think I don’t understand these matters?”

The Finance Minister’s clarifications aim to address public concerns and highlight the government’s commitment to creatinparent tax environment, particularly for the middle class.

Title: Nirmala Sitharaman Highlights Tax Relief Efforts for Middle Class, Dispels GST Misconceptions