Jaitley's last full Budget to be different due to GST
The last full Union Budget to be presented by Finance Minister Arun Jaitley in the forthcoming session of Parliament beginning on Monday will be unlike his previous four such exercises because of the complete overhaul of the indirect tax regime effected by implementing the Goods and Services Tax (GST) last year.
The Budget, to be the last for the BJP in view of the general elections due in the first half of 2019, usually has two main components.
The first part deals with new schemes and outlays for various existing schemes and sectors for the coming fiscal, while the second contains announcements on direct and indirect taxes.
With GST realising the dreams of the pre-Independence nationalist bourgeoisie of a unified market through a single tax regime, replacing the earlier system of multiple central and state taxes, this year's budget will need take into account only those items like petroleum products that still remain outside the purview of GST.
The 2018-19 budget could thus contain changes in customs and excise duties on these remaining products, which for most others have been subsumed under GST.
In the area of direct taxes like income tax and corporate tax, Jaitley hinted at some relief for taxpayers as he made a case for rationalisation of the direct tax structure considering the fact that "the tax base has expanded".
Addressing an event here on Saturday to mark International Customs Day, Jaitley said: "In income tax, the base has become larger; it's bound to enlarge. And, therefore, charging higher rates from few selected groups -- which has traditionally been done -- is an area which has been changing."
The country's net direct tax collections witnessed an increase of 18.7 per cent till January 15 this fiscal, compared with the corresponding period last year.
With the general elections due in 2019, the government will present next year, instead of a full Budget, a vote-on-account, which only deals with the expenditure. Besides, new schemes and changes to taxation are not presented in a vote-on-account.
Moreover, with major states bound for polls this year, observers expect the budget to be weighed in favour of the farm sector at a time when data shows a dip in agriculture growth and the sector under stress.
- Phogat's performance will inspire others: PM 20 Aug 2018 | PTI
- No dialogue offer from Modi to Khan: Pak 20 Aug 2018 | PTI
- Bengal to examine financial aid to MSMEs through SCBs: Mamata 20 Aug 2018 | PTI
- Kerala floods declared 'calamity of severe nature' 20 Aug 2018 | PTI
- Wrestler Vinesh enters history books, becomes first Indian to win Asiad gold 20 Aug 2018 | PTI
- HC asks DMRC how it can justify not providing free drinking water to commuters 20 Aug 2018 | PTI
- Will give a strong reply when needed: Sidhu on Pak visit 20 Aug 2018 | PTI
- Govt has asked industrialists, biz organisations to help Kerala deal with floods: Prabhu 20 Aug 2018 | PTI
- Alwar lynching: SC seeks Rajasthan's response 20 Aug 2018 | IANS
- Pak wants 'uninterrupted' dialogue with India: Qureshi 20 Aug 2018 | PTI
Sunday EditionView All
19 Aug 2018 | Kumar Chellappan
A succession war is brewing in the DMK after Karunanidhi’s death, with both Stalin and Alagiri staking a claim to their father’s political legacy. This, along with the churning in the AIADMK after Jayalalithaa’s death, is bound to have an impact on the political landscape of Tamil Nadu in the run-up to 2019 Lok Sabha polls, writes Kumar Chellappan Tamil Nadu politics sans Muthuvel Karunanidhi is like the drama Hamlet without...
STATE EDITIONSView All
21 Aug 2018 | Staff Reporter | Bhopal
The beauty of city of lakes painted through vibrant colours and the eye catching shades over canvas spellbound the art appreciators. A group painting exhibition is being put up at Swaraj Bhavan Art Gallery that began here from Monday...