Govt mulling I-T rate cut, says Sitharaman

New Delhi, December 7

Finance Minister Nirmala Sitharaman on Saturday said the government was working on more steps, including rationalisation of personal income tax rates, to revive the sagging economy.

The GDP growth slowed down to more than six-year low of 4.5 per cent in the second quarter of the current fiscal from 5 per cent recorded in the first quarter. The government has taken several measures during August and September to boost the economy, she said here.

Besides, she said, the public sector banks had disbursed nearly Rs 5 lakh crore without compromising on prudential norms in the past two months to boost consumption in the hinterland.

Asked if the government was considering rationalisation of personal income tax rate for putting more money in people’s  hands, the Finance Minister said, “It is among many things that we are thinking of.” Following the reduction in corporate tax in September, there has been a growing demand for a slash in the personal income tax to buttress consumption. — PTI