Government may not provide personal tax rebates in 2023-24 budget
People hoping for personal tax incentives in the 2023-24 budget could be disappointed because the central government, confident of robust consumption and private investment growth, may avoid any steps that could hinder the central bank’s battle against high inflation. The finance ministry could draw its optimism about economic growth and revival in private investment from the healthy credit offtake and positive feedback from small businesses at a time global businesses are eyeing alternatives to China.
Why it’s important: Rebates in personal income tax is seen as a measure to boost consumption. But that may not happen as credit offtake remains robust, giving the Reserve Bank headroom to tame inflation.
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