Read: Budget 2017: Jaitley halves income tax for those earning Rs 2.5L-Rs 5LComing to the tax proposals, the minister has proposed a tax cut for small and medium scale enterprises to 25%. All of these measures indicate a degree of populism, and the only justification could be that it would help the bulk of the low end income tax assesses. There had been a lot of hype before the budget for a lowering of personal income tax rates across the whole income range. As is well-known from public finance theory, what one should aim for is moderation in tax rates and a widening of the base. It is therefore good that Jaitley has not pandered to any reduction in the top marginal tax rates.

Source: Hindustan Times February 01, 2017 14:09 UTC