Centre Mulling Action Plan To Mitigate Impact Of 50pc Tariff Imposed By The US
The secretary also said that the government has taken some steps and more are in the offing to perk up domestic demand, which could also provide some support to manufacturing units feeling the heat of US tariffs. The government in the Budget had announced zero income tax for income up to Rs 12 lakh under the new tax regime providing substantial savings to taxpayers: Reports
NEW DELHI: In a move to perk up domestic demand amid the US tariff blow, the Centre is working on several action plans to mitigate the impact of a steep tariff hike of 50 per cent imposed by the US on Indian shipments, a top finance ministry official said on Sunday.
“There are certain employment-heavy sectors which do have exposure to the US and to that extent may get affected. The government is well aware of that and is assessing the possible impact and working towards possible solutions,” economic affairs secretary Anuradha told a Delhi based news agency in an interview.
Besides, the secretary also said that the government has taken some steps and more are in the offing to perk up domestic demand, which could also provide some support to manufacturing units feeling the heat of US tariffs. The government in the Budget had announced zero income tax for income up to Rs 12 lakh under the new tax regime providing substantial savings to taxpayers.
Thakur also exuded confidence that the government is on track to meet the fiscal deficit target of 4.4 per cent set in the Budget despite temporary mismatch, which may have been exhibited in the latest monthly numbers. Recently, the government also announced GST reforms to be carried out in terms of rate rationalisation, which is expected to bring down prices of many commodities.
The statement assumes significance in the light of Centre's fiscal deficit rising to 29.9 per cent of the full-year target at the end of July as against just 17.2 per cent of the Budget Estimates (BE) in the same period of the last financial year.
“So this question (of achieving the target) has been coming up because of the latest numbers. I would like to say that quarter-by-quarter or month-by-month assessments of fiscal deficit numbers may not give a correct picture because of temporal mismatches, which may come in on the receipt and expenditure side. On the overall fiscal deficit numbers, our assessment so far is that we will be able to achieve the target,” she said.
