The Senate Standing Committee on Finance has made important budget recommendations. They suggest increasing government employees’ pensions by 20 percent, much higher than the previous 7 percent proposal. In addition, they want to raise salaries by 50 percent instead of just 10 percent. These changes aim to help workers face rising living costs.
Moreover, the committee recommends making all daily wage workers permanent. They also suggest raising the minimum monthly wage from 37,000 to 50,000 rupees. To support green energy, they want to remove the 18 percent sales tax on solar panels. This will make solar energy more affordable for people and businesses.
The committee also proposes giving income tax exemption on earnings up to 12 lakh rupees per year. They want to stop charging debit service fees on electricity use up to 200 units monthly. This will reduce bills for many households. Furthermore, they recommend lowering sales tax on 850cc vehicles from 18 to 10 percent.
In addition, the committee suggests new taxes on high agricultural income, starting at 10 percent for incomes over 50 million rupees. They want zero sales tax on stationery and reduce the tax on homeopathic medicines from 18 to 1 percent. Also, the extra 3 percent tax on grand chicken should be removed to help consumers.
They propose applying sales tax on dyes and chemicals while cutting excise duty on beverages and juices from 15 percent. They also recommend removing the 2 percent tax on online shopping to boost e-commerce. Overall, these steps aim to ease the burden on people and encourage economic growth.