New Delhi: Lower tax rates, interest-free agriculture loans up to Rs 1 lakh and steps to make India a USD 5 trillion economy by 2025 are among the key promises of the ruling BJP as it unveiled the manifesto for the general elections starting April 11.
On taxation front, the BJP said its government’s economic policy has been guided by the principle of lowering the tax rate and improving compliance, thereby broadening of the tax base. With improved compliance and increased tax base, the tax to GDP ratio has reached 12%, highest in the recent past, up from 10.1% in 13-14.
“This increased revenue has been deployed for benefits to the poor and creation of infrastructure at an unprecedented level. “We will continue with our policy in the similar manner – lowering of tax rate, thereby rewarding honest tax payers and improving compliance,” it said. In the interim Budget presented to Parliament in February, the BJP-led NDA government has provided tax rebate for income up to Rs 5 lakh.
It also said the country has become the world’s sixth largest economy and would soon be among the top five. “We aspire to make India the third largest economy of the world by 2030. This implies that we commit to make India a USD 5 trillion economy by 2025 and USD 10 trillion economy by 2032,” document said.
“By 2024, we will make capital investment of Rs 100 lakh cr in the infrastructure sector. We recognise that investment driven growth requires cheaper cost of capital. The party would also endeavour to raise India’s ranking among top 50 nations in ‘ease of doing business index’, strengthen Companies Act, and introduce new industrial policy.
To encourage the spirit of entrepreneurship amongst the youth, the party has promised to launch a new scheme to provide collateral-free credit up to Rs 50 lakh for entrepreneurs. “We will guarantee 50% of the loan amount for female entrepreneurs and 25% of the loan amount for male entrepreneurs,” BJP said. It has also promised further simplification of GST by engaging all stakeholders.
