People who believe that the old tax regime, which allows exemptions, is beneficial to them are free to continue in that scheme, but the government is taking efforts to make the new tax regime without exemptions attractive enough to people, Finance Minister Nirmala Sitharaman said on Wednesday (February 1).

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She was speaking at at a press conference after presenting the budget 2023 earlier in the day.

She said the government was working on making the new tax regime attractive for taxpayers. "If rates are so low, you are going to benefit net net," she said.

Revenue secretary Sanjay Malhotra said that 60% of the tax revenue of the country has come from the new tax regime.

On the reduction in the surcharge on the highest income group, Malhotra said that the earlier tax rate was one of the highest and even higher than those in developed countries.

Expenditure secretary TV Somanathan added that the theme behind the lower rates and even in the new tax regime was a move towards lower rates but fewer avoidance measures and exemptions.

Women empowerment, especially in rural areas, digital training of people for industrial revolution 4.0, development of tourism destinations and swifter transition to renewable energy are the major focus areas of the budget 2023, she said.

“This is a beautifully balanced budget. The Rs 10 lakh crore capex will give a big leg up to investment from the government,” she said.

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Tax rebate limit raised to Rs 7 lakh under new regime — Check proposed tax slabs here

(Edited by : Pradeep John)

First Published:Feb 1, 2023 4:16 PM IST