The big post-budget interview: Nirmala Sitharaman says she wanted to ‘honour the taxpayer’

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Subscribe to enjoy similar stories. New Delhi: The tax cut announced in the budget was driven primarily by the intent to honour the honest taxpayer, said finance minister Nirmala Sitharaman. In a wide-ranging interview to Mint and HT, she explained the philosophy behind the new Income Tax bill expected to be tabled in Parliament this week, what the government is doing to ensure regulators don’t operate in silos, how the government is trying to diversify export markets and the plan to reach 8% GDP growth to become a developed country by 2047.

Edited excerpts: Yes, that is one, and also see normally, tax relief will not be this range, and will also not be simultaneous across the board. You were at two (lakh rupees starting tax slab), then you’ll raise it to 2.5 or you were at five (lakh), you will raise it to seven (lakh). Now, from seven (lakh), I am taking to 12.

So that’s a big deal. Yes, because the rate change has happened simultaneously. So, as a result, you find that the benefit is accruing to every income holder, irrespective of the amount that he earns.

Everybody gets benefits. Other than that, those who have been given the rebate, get the clean knockout — no tax to be paid. So we targeted the group with rebate, and also because of the rate change, everybody derives benefits.

From 2019, or 20, Prime Minister (Narendra) Modi clearly told me to “use technology and get the faceless (assessment) going". We want to have trust in the taxpayers. We don’t want any rent-seeking happening.

We also want the taxpayer to do his own assessment and make it simpler. We brought in the faceless assessment. We also brought in Vivaad Se Vishwas clearance at that time.