Tax Relief for the Middle Class: Rising Demands Ahead of Budget 2025
By: Admin
Date: January 13, 2025
Category: Tax News
Reading Time: 4 Minutes
Growing Momentum for Tax Relief
As Budget 2025 approaches, demands for tax relief for India’s middle class are gaining momentum. A recent post by an X user sparked debate about the challenges faced by this demographic, which plays a vital role in the nation’s progress but often remains unacknowledged.
The Overlooked Middle Class
The post highlighted the sacrifices of middle-class Indians aged 20–45, describing them as “real Nationalists” who chose to stay in the country and contribute despite facing economic struggles. The user pointed out:
- Many could have opted for better opportunities abroad but stayed to support India’s growth.
- Despite their contributions, this group remains invisible in national conversations and lacks recognition.
Voices Supporting Tax Relief
The middle class, burdened by high taxation and rising costs, is now seeking reform. Several experts and influencers have emphasized the need for tax relief to boost disposable income and economic growth.
1. Finance Influencers
They have called for a reduced tax burden, arguing that lower taxes could increase spending and reduce the strain on existing taxpayers.
2. Confederation of Indian Industry (CII)
Proposed relief in the marginal tax rate for incomes up to ₹20 lakh to increase consumption and revenue buoyancy.
3. PHD Chamber of Commerce and Industry (PHDCCI)
Suggested restructuring tax slabs:
- 20–25% for incomes between ₹15 lakh and ₹50 lakh.
- 30% for incomes above ₹50 lakh.
4. Mohandas Pai (Former Infosys CFO)
Highlighted the disproportionate tax burden on the middle class. Proposed revised tax slabs:
- No tax for incomes up to ₹5 lakh.
- 10% for ₹5–10 lakh.
- 20% for ₹10–20 lakh.
- 30% for incomes above ₹20 lakh.
Need for Inclusive Tax Reforms
Experts argue that expanding the tax base and revising the current tax structure could address middle-class concerns. This approach would:
- Increase disposable income.
- Boost consumption and economic growth.
- Ensure equitable fiscal policies.
Conclusion
With Budget 2025 on the horizon, the government has an opportunity to address the long-standing concerns of the middle class. As public and expert calls for relief grow louder, it remains to be seen whether the upcoming budget will provide much-needed financial support to this vital segment of society.
