BJP leader Arun Jaitley today advocated hike in income tax exemption limit, enhancement of excise limit for small industrial units up to Rs 5 crore and immediate implementation of the Goods and Service Tax (GST) to help expand economic activity in the country.
He said the declining economic situation in the country has impacted all and to recreate investment environment there was need to place more money in the hands of consumers.
Jaitley also suggested restoration of grant of compesation to border area farmers who are losing on cultivation of their land as the fencing is within India's territory and their land is across the fencing.
In an article, He also sought 50 tourism circuits centres to be declared, including Amritsar due to its religious and historical importance, and said such circuits should be exempted from strict compliance of Jawahar Lal Nehru Urban Renewal Scheme (JNURLU) conditions on states on taxation on property owners.
He said though it is for his party to decide collectively on larger policy issues, he will strongly put forth his iedas both within the party and in Parliament.
"The current income tax exemption for income of Rs 2 lakh should be gradually but significantly raised. It will be the major relief to small traders and mid-level employees and the common man.
"The initial loss of revenue is not very significant.
Such loss would be partly made up by placing more money in the hands of consumers and earning indirect taxes when consumers spend this money. The more the money velocity, the larger will be indirect tax benefits," he said in the article.
He also said that small industrial units with turnover of Rs 1.5 crore are exempted from payment of excise duties and "in view of the depleting value of rupee and inflation, this limit should be enhanced to Rs 5 crore."
Seeking immediate implementation of the Goods and Service Tax (GST), he said that comfort level will be given to states with this aspect which anticipate a loss of revenue. "This will ensure uniform rate of tax in all states," he said.