Will like to have simple direct taxation system with low rates: FM Sitharaman

Finance Minister Nirmala Sitharaman on Monday said that eventually the government would like to have a simple direct taxation system with low rates.
 
Responding to a question about providing relief to income tax payers at BT Budget Roundtable 2022, Sitharaman said that she has already provided a parallel track of simple and more attractive rates for direct tax payers.
 
Eventually, the government would like to have a simple direct tax system with lower rates to make it attractive and improve compliance, she said. However, she didn't give a timeframe for it, saying that like all other things, it will also run its course.

#BudgetRoundTable | We've given a parallel and more attractive framework of income tax rates through the new regime. A simpler #DirectTaxCode (DTC) can be expected soon, confirms FM @nsitharaman pic.twitter.com/fk4whfIfVK

— Business Today (@business_today) February 7, 2022

Explaining the big increase in capital expenditure in Budget 2022-23, Sitharaman said the government chose that route as every rupee spent on capital expenditure has a multiplier effect of Rs 2.995 as against revenue spend which has a multiplier effect of 0.95 for every rupee spent.
 
On private investment, the finance minister said that while it is below than where it should be, a lot of investment is happening. The Centre's production linked incentive (PLI) scheme for 14 sectors has received a great response and investments are happening under it which would also lead to job creation. Besides, she said the country's exports have increased which couldn't happen without ramping up of domestic capacities.
 
On cryptocurrencies, the FM said that wider consultation with the industry is going on after which the government will decide on its regulation. However, the government has no hesitation in taxing gains from cryptocurrencies.
 
Responding to a question about the bond market, Sitharaman said that it was jittery even before the Budget and the movements there don't have anything to do with her Budget announcements. She said the bond market is jittery because of anticipation about decision by US Fed on rate hike,followed by other banks.

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