India Unveils Tax Cuts to Boost Slowing Economy

In a bid to bolster consumption and perk up a slowing economy, India has announced tax cuts to support growth. The country plans to cut personal income tax rates to boost middle-class spending power. According to the new tax regime, people earning up to 1.28 million rupees ($14,800) per year will not have to pay any taxes. Tax rates for people earning above the new threshold were lowered, with the new tax rate ranging from 20-25% for an annual income of 1.6-2.4 million rupees. The previous tax rate was 30%. The middle class exemption has been increased to INR1.2m annual income, up from the previous threshold of INR700,000. The government aims to encourage consumption and stimulate economic growth through these tax cuts. The move is expected to benefit the middle class, who will now have more disposable income to spend on goods and services. The tax cuts are part of the government's efforts to revive the economy, which has been slowing down in recent times. The impact of these tax cuts on the economy will be closely watched in the coming months.