After Finance Minister Nirmala Sitharaman was sharply criticized for imposing an increased GST on salted popcorn sold along with tickets in theatres and a 28% tax on caramelised popcorn, all eyes were set on her.
Will she take further steps to rationalise the Goods and Sevice Tax when she rises to present Union Budget 2025-26 in Parliament on February 1?
Will GST Be Simplified?
Will the Finance Minister be magnanimous enough to reduce the GST rates, reduce the number of slabs, and take other steps to simplify the cumbersome tax regime and relieve the lower middle class?
Before she wrapped up the pre-budget consultations, Nirmala Sitharaman met industry captains, business tycoons, representatives from smaller businesses, representatives of trade unions, etc.
Most of the people meeting the Finance Minister urged her to slash or do away with the GST rates in their sector, e.g., the gems and jewelry sectors requested to bring the GST on that sector as low as 1%. The tourism sector put forward a similar request.
Also Read: Union Budget 2025: Can Nirmala Sitharaman Deliver As GDP Growth Rate Stands Slashed?
The list is long and no Finance Minister can ever satisfy or please every one. Nirmala Sitharaman is caught in a peculiar situation where she has to keep the fiscal deficit to 4.5% of the GDP and implement many development projects and government schemes as well.
Slamming the GST, Congress spokesperson Salman Soz quoted World Bank report and said that it is the world’s most complicated tax system and urged the Finance Minister to simplify it.
BJP spokesperson Vishwas Pathak told journalists that the NDA government under Narendra Modi has not increased the taxes too high on most items since 2014 and has rationalised and stablised the tax regime, which has given handsome dividends
Every One Loves Reduced GST
The health care sector has demanded a reduced GST on medical equipment and devices so that innovation can be encouraged and healthcare can be offered at a reasonable cost.
Hospitality sector has demanded that there should be zero GST or a refund of GST collected from foreign guests to give tourism a boost that may create jobs.
The income on coworking spaces attract 18% GST at present, the industry wants it to be slashed to ecourage start-up companies and the MSME sector.
The construction sector has demanded a rationalization of GST on under-construction assets. Besides reduced GST rates on construction materials can boost the availability of residentcial spaces in tier 2 and tier 3 cities.
Also Read: Union Budget 2025: Will Nirmala Sitharaman Announce 8th Pay Commission, Sops For Delhi?
The insurance sector has demanded to cut GST on its products from 18% and bring it to 5%. The sector representatives argue that a reduced GST along with technological innovation may invite more FDI in the sector and boost the insurance business.
Will Nirmala Sitharaman Raise MNREGA Wages?
The Confederation of Indian Industries (CII) has urged Nirmala Sitharaman to increase the minimum wage under the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) from Rs 267 to Rs 375 per day. It also recommended to hike the amount under PM Kisan Yojana from Rs 6,000 to Rs 8,000.
Also Read: Union Budget 2025: Will Nirmala Sitharaman Ease Burden On Salaried Class By Slashing Income Tax?
The CII hoped that these steps would increase the income of the people from the lower income group and boost the rural economy, that will push the Indian economy ahead.
The rural employment scheme, launched by Dr. Manmohan Singh, is a need-based scheme, and the fund is provided by the union government to states and union territories, which implement development schemes at the local level.
Nirmala Sitharaman allocated Rs 86,000 crore for the MNREGA in the budget of 2025-25. It was about 14% less than the allocation in FY 2023-24.
Will the Finance Minister increase the allocation at a time when the government has come under scathing attacks for increasing unemployment and food inflation?
