Union Budget 2023: Will there be a change in income tax slab? FM Nirmala Sitharaman drops BIG hint

Every year ahead of the Union Budget, middle-class people demand a rebate in tax. They expect the government to give a respite to taxpayers to help them tackle inflation.

This year as well, the chorus for a change in tax slab is getting louder. Speaking about middle-class taxpayers, Finance Minister Nirmala Sitharaman said that she herself belongs to the middle class and can understand the pressure a middle-class family goes through. She said that the Modi government has not imposed any fresh taxes on the middle class. Sitharaman was probably hinting that a change in tax structure is unlikely this year.

Sitharaman will present Union Budget for 2023-24 in the Lok Sabha on February 1 amid expectations that the government will raise the income tax limit and provide relief to middle-class taxpayers, besides others.

“I too belong to the middle class so I can understand the pressures of the middle class. I identify myself with the middle class so I know,” she said while speaking at a function organised by the Panchjanya magazine, an RSS- associated weekly.

In the same breath, the minister reminded the audience that the present Modi government has not imposed any fresh taxes on the middle class. Also, she added, income of up to Rs 5 lakh is exempt from the income tax.

She said the government has taken various measures like developing the metro rail network in 27 cities and building 100 smart cities to promote ease of living.

“The middle class uses public transport the most and we brought the metro in 27 places. A lot of middle-class people are shifting to cities in search of jobs & we’re focusing on the goal of ‘smart cities’. We will continue our work for the middle class,” said Sitharaman.

The minister assured them that the government can do more for the middle class as its population is growing and it has become sizeable now.

“I quite recognise their problems. The government has done a lot for them and continue doing the same,” she said without making any commitment. Sitharaman said the government has been raising the outlay on capital expenditure in each Budget since 2020.