Thread by @sway_hi

Getting a lot of angst from people on #Budget2020 specially with regards to the tax slabs. Professional whiners are at again!
As the first budget of a new decade, this one is sending a tax reform signal. GoI is simplifying the income tax slabs and by giving options, it is - (1)

a) Sending a subtle message to increase consumption. Young tax payers joining the mainstream no longer need to buy an LIC policy or a mandatory investment in ELSS just to show exemptions. They can use the simplified income tax slabs and do away with mandatory savings for tax! (2)

b) For those of us who are already deeply entrenched in the ELSS, PPF, Health Insurance cycle, this budget still gives us the option of going ahead with the status quo.
"Saving for Tax benefits" is no longer necessary since most of these tax exemptions come with long lock-ins.(3)

As to the constant gripe from people on doing away with Income Tax. That ain't going to happen any time soon, since Taxes are the most stable source of govt revenue. Revenue which is needed to build roads, hospitals and parks. Do have a look at countries with highest slabs!

In countries such as US too Income Tax forms one of the biggest source, if not "THE BIGGEST" source of revenue!

The Second bit of misinformation being spread is that NRIs will have to pa taxes now. Dear supporters of illegal immigrants, NRIs always paid taxes in countries with income tax. And since they paid taxes in the country of residence they did not in India, as per DTAA..(4)

or the Double Taxation Avoidance Agreement..
Furthermore did u know that if u are a US citizen, ur income worldwide will be taxed by US government. And US taxation rate falls around the 40% bracket for most people!

- Also if u r staying in US, irrespective of ur Green Card status or citizenship, u are expected to declare ur foreign account balance.
In case ur foreign account holding/balance is beyond a set threshold, u have to pay federal tax!

Getting back to the budget. IMO the tweaking of Income tax slabs suggest an intent of @nsitharaman ma'am to simplify the income tax and gradually reduce the numerous exemptions included.
A simplified taxation process should also lead to increase in tax base eventually! (5)

@nsitharaman Moving on to Import duty hike. A lot of us, have got alarmed by the way, cheap Chinese imports have flooded Indian markets, especially in the home furniture/furnishing sections. New companies trading Chinese goods masquerade as "startups". This hike will stop that. (6)

@nsitharaman Earlier Chinese imports used to be restricted to Equipments and electronics. Over the last few years, even small ticket purchase items such as stationery, home furniture and light bulbs have gone Chinese!

@nsitharaman At the beginning of her speech Fin Min laid out plans for developing warehouses across Indian hinterland, of allowing women Self Help Groups to get into grain storage at village level and how Railways will have cold storage to carry perishable. Logistics is a focus for GoI! (7)

@nsitharaman Besides this some great initiatives under this budget have been taken in the education sector. Namely Police institutes and Forensic Institutes, providing education in hitherto unexplored areas. This besides a robust outlay for education sector. (8)

@nsitharaman Not everyone is aware that China subsidizes its manufacturers. These low cost products then flood out higher cost products in Indian markets, produced ingenuously.
asia.nikkei.com/Spotlight/Cove…
GoI has decided to subsidize Exporters for duties and VAT on fuel etc. Good move!

@nsitharaman I did a scathing criticism of Budget 2019, last year in my article here:
myvoice.opindia.com/2019/07/budget…

This year I find that the government has gone ahead and addressed most of the points I raised. Why then should one criticize them for the sake of it? (9)

@nsitharaman In my article I had argued that the government revenue is solely dependent on direct taxes and that was worrying.
This time around not only has the GST revenue been the 2nd highest but the GoI has also talked about dis-investing LIC through an IPO. (10)

@nsitharaman Over time as indirect taxe revenues become higher and stable, the government can look at decreasing the Direct tax burden on people by lowering the tax slab. In the long run this might lead to a higher tax base too..

@nsitharaman In my article I had argued that government's target for building airports is not sufficient.
US has 5000+ airports, China has 400+ airports and India has 131 airports as off 2017.
This budget @FinMinIndia has talked about building over 100 airports. Now that is ambitious! (11)

@nsitharaman @FinMinIndia I had also pointed out that many countries across the world run on tourism. By ignoring the sector we were ignoring our a golden hen.
This budget the govt has laid out a plan to build museums across the country and develop 5 heritage cities. Lets have more of it, I say! (12)