Understanding Why Nirmala Sitharaman Can’t Lower Tax Rates

Finance Minister Nirmala Sitharaman recently addressed the issue of taxation during a convocation ceremony at the Indian Institute of Science Education and Research in Bhopal. She acknowledged the public’s frustration with high tax rates but explained the government’s challenges in reducing them.

Sitharaman emphasized that the current taxation system is crucial to meet the country’s various financial demands, including funding for essential research and development projects. She candidly expressed her desire to lower taxes, but highlighted that India’s significant challenges make this difficult. “I wish I could bring it down to almost nil. But India’s challenges are severe, and we have to overcome them,” she stated.

The Finance Minister pointed out that India’s transition from fossil fuels to renewable energy requires substantial resources, which are currently being sourced domestically. Sitharaman stressed that relying on external funds is not a viable option, and innovation is crucial to making the best use of available resources.

In her speech, she also encouraged academics to seek patents for their research, underlining the importance of turning innovative ideas into practical solutions for societal benefit. “It is important for you (academics) to seek patents and enable your patented formulation to be commercialised and brought to the use of society. Encouraging science for both its own sake and for societal benefit is crucial,” she remarked.

Sitharaman concluded by highlighting the government’s significant investment in scientific research, which is funded by taxation. “The government is not just talking; it is putting money into R&D, money that comes from taxation,” she added.

Aakhir Tak Editor-in-Chief

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