PHD Chamber of Commerce and Industry’s (PHDCCI’s) new president Sanjay Aggarwal on Sunday said the next Budget should lower the maximum income tax (I-T) rate to around 25 per cent from the current 30 per cent plus surcharges.
“In the current scenario, there is a need to increase the disposable income of people by reforming the direct tax structure. The maximum personal income tax rate should be around 25 per cent to increase the personal disposable income. This will boost demand in the economy,” Aggarwal, who is chairman and chief executive officer (CEO) of Paramount Cables, said.
His comment was in contrast to economist Joseph Stiglitz’s, who wanted the rich to be taxed more under the current circumstances.
Currently, an annual income of over Rs 10 lakh attracts 30 per cent tax, besides education and health cess of four per