Govt both pro-business and pro-poor: Jaitley
17 Aug 2014 11:11 PM GMT
Addressing a BJP function here, Jaitley opined that there is nothing wrong in being ‘pro-business’ as the country wants investments for better economic growth, which in turn will lead to job creation and higher revenues for the government.
‘Unless the Government gets revenue, it cannot build infrastructure and service the welfare schemes for the poor. By being pro-business and pro-poor, I am not contradicting but both have to exist at the same time,’ Jaitley pointed out.
On retrospective taxation, which the past government had brought in spooking investors, Jaitley said that the imposition of the retrospective tax had created a negative sentiment about the country.
‘If your taxation policy is so fragile then there is no authenticity to your economic and tax policies. The UPA government had pushed the country to this situation,’ he said, adding that the present dispensation is not a ‘high taxation government’.
Jaitley blamed the high inflation rates for the low savings rate. ‘Last year during the UPA regime, the savings rate declined to 30 per cent from 33 per cent. There is a need to incentivise savings, which get converted to higher investments,’ he said.
Welcoming the Prime Minister’s Independence Day announcement to replace the Planning Commission with a new institution, Jaitley said, ‘We do not need a command structure where things would be decided by the Government sitting in New Delhi. Every state should have the right to decide on how it can take benefits from the country’s resources.’
‘Unless the Government gets revenue, it cannot build infrastructure and service the welfare schemes for the poor. By being pro-business and pro-poor, I am not contradicting but both have to exist at the same time,’ Jaitley pointed out.
On retrospective taxation, which the past government had brought in spooking investors, Jaitley said that the imposition of the retrospective tax had created a negative sentiment about the country.
‘If your taxation policy is so fragile then there is no authenticity to your economic and tax policies. The UPA government had pushed the country to this situation,’ he said, adding that the present dispensation is not a ‘high taxation government’.
Jaitley blamed the high inflation rates for the low savings rate. ‘Last year during the UPA regime, the savings rate declined to 30 per cent from 33 per cent. There is a need to incentivise savings, which get converted to higher investments,’ he said.
Welcoming the Prime Minister’s Independence Day announcement to replace the Planning Commission with a new institution, Jaitley said, ‘We do not need a command structure where things would be decided by the Government sitting in New Delhi. Every state should have the right to decide on how it can take benefits from the country’s resources.’
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