Union Finance Minister Nirmala Sitharaman on Tuesday, said that she wished the taxes could be brought down to almost nil, but India’s challenges were severe and need to be overcome.
Speaking at the 11th convocation ceremony at the Indian Institute of Science Education and Research in Bhopal, the minister stressed on the need for funding research and development. She said that her role as Finance Minister is to generate revenue, not to create trouble for the people.
“The revenue generated through taxes is crucial for funding research and development in India. The government is committed to generating revenue without overburdening the people. Taxes in India contribute to critical sectors such as renewable energy and innovation. Despite the challenges, India continues to heavily invest in transitioning to renewable energy,” she stated.
The Finance Minister also announced a comprehensive review of the Income Tax Act of 1961, with the aim of benefiting the middle class.
She mentioned that taxpayers could potentially save up to Rs 17,500 with the revised tax structure.
She further pointed that India needs to use its own funds to fulfill its commitment to the energy transition, as the promised funds from the international community have not yet arrived.
“India didn’t wait. We fulfilled the promises made in the Paris Agreement using our own resources. As Finance Minister, it can be demotivating for me to constantly respond to inquiries about why our taxes are the way they are and why they can’t be reduced,” she said.
Citing schemes such as the Anusandhan Kosh, announced in the interim budget to provide long-term financing for sunrise sectors, Sitharaman stated that the collected tax revenue is being directed towards funding research and development in the country.
She later encouraged the students of IISER to devise innovative solutions to propel India towards a developed nation (“Viksit Bharat”) and to expedite the transition to renewable energy, Sitharaman said, “My job is generating revenue, but not troubling people. I assure you of that.”
Sitharaman also urged scientists to focus on developing batteries for storing renewable energy, as sustainable energy sources are crucial for a developing country like India.
While talking about the strides India has made in space research and the rapid roll out of 5G spectrum in the country, the finance minister acknowledged that Bharat Sanchar Nigam Limited (BSNL) is still working on rolling out 4G.
“We have not imported this technology; it has been developed by people like you, which is a significant achievement for India,” added Sitharaman.
During the event, Sitharaman laid the foundation stone for an academic building at the institute and awarded degrees to 442 researchers. Madhya Pradesh Chief Minister Dr Mohan Yadav was also present.
