Wish I could bring down taxes to nil, says FM Nirmala Sitharaman

New Delhi: 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 the government needed resources to meet them.

"There are times when being the finance minister it doesn't give me motivation when I have to answer people about why are our taxes like this? Why can't we even be lower than this? I wish I can bring it down to almost nil. But India's challenges are severe and challenges will have to be overcome,” Sitharaman said.

The Finance Minister’s comment assumes significance as she has been frequently criticised by the opposition parties for high direct as well as indirect taxes imposed on the common people. Sitharaman was widely criticised for her recent budget proposal related to removal of indexation benefits for long-term capital gains on property. However, the central government later decided to amend the Finance Bill 2024 to restore the indexation benefit for property acquired before July 23, 2024.  

Speaking at the convocation ceremony of the Indian Institute of Science Education and Research (IISER) in Bhopal, Sitharaman urged people to understand the challenges that the country is facing and the money required for them. “My job is generating revenue, but not troubling people I assure you,” she said.

Referring to the investments required for transition to cleaner energy, Sitharaman said India is moving from fossil fuel to renewable energy at its own strength as the country cannot afford to wait for money from somewhere else.

The Finance Minister said that the promises made by the developed countries related to compensation as part of the Paris Agreement on climate change have not been fulfilled.

“The world promised to give us money on transitioning from fossil fuel to renewable energy. But that money is yet to come. The promises given in Paris have all been fulfilled with our own monies,” she said.

Sitharaman also underlined the importance of higher investments required for funding research and development (R&D) activities.