In an exclusive interview with News, Ashneer Grover, the founder and former MD of BharatPe, shared his candid opinions on the recently presented Budget 2024. Here’s what he had to say about various aspects of the budget:
Individual Tax Rates and Standard Deduction
Ashneer Grover described the changes to individual tax rates and the standard deduction as “absolutely useless.” He believes that Indian citizens should only need to pay one clear tax. According to him, the current tax slabs are ineffective and do not serve any real purpose.
Internship Program for 1 Crore Youth
Grover acknowledged the internship program aimed at providing opportunities for 1 crore youth as a positive step. However, he noted that the budget lacks drastic measures that would create millions of jobs. He suggests that more incentives should be given to the private sector, which is ultimately responsible for job creation.
Capital Gains Tax
On capital gains tax, Grover criticized the idea of taxing earnings from capital investments. He pointed out that a company already pays taxes to acquire capital, and taxing the earnings from that capital is excessive. He argues that this mentality of trying to extract every possible rupee could drive businesses to more tax-friendly countries.
Angel Tax
Grover praised the removal of angel tax, calling it a “great step” that should have happened much earlier. He views this as a positive move for the startup ecosystem.
Key Mistake and Demand for Tax Reforms
Grover highlighted a significant mistake in the budget, stating, “Until we realize that government spending is not driving the economy nor creating jobs, the country will keep repeating the same mistakes.” He argues that rather than taxing people, the focus should be on allowing private enterprises to invest freely and create jobs. Grover calls for tax reforms that simplify the tax system and eliminate unnecessary complexity.
