The government has messed up the macro-economic system over the last five years and currently to revive demand, it should have abolished the income tax rather than cutting corporate tax which will yield no result for economic revival, senior BJP leader and current Rajya Sabha member Subramanian Swamy said.
Swamy, a former Union Law and Commerce Minister, launched his latest book “RESET — Regaining Indian’s Economic Legacy” and talked about the evolution of India’s economy while suggesting ways to revive it. The book was released by former President Pranab Mukherjee.
Critical of the series of recent government measures to pull the economy out of the slowdown, Swamy also termed the previous five years of BJP rule as bad for the macro-economy.
“The government, in the last five years, has been doing things which are bad for macro-economics. The Prime Minister has done good works in micro-economics in Ujjawala, providing LPG connections to women in rural areas… But macro-economics is the whole system… and the whole system has been put into a mess which requires rectification and that can not be rectified by individual measures like reducing taxes for the corporate sector,” Swamy added.
“Abolishing income tax had been a very salutary (step), the middle class would have been very happy and they would have saved the money. The problem with the corporate sector is that demand is low, so demand can only come when you empower the people, the people means income tax and that should have been abolished. Reducing corporate tax is of no use. Because they can only increase more supply but if there are no buyers, then there is no result in increasing supply,” he said.