
Why 8th Pay Commission is spurring calls for income tax relief in Budget
India TodayWith the government announcing the setting up of the 8th Pay Commission, which would see the salaries of government employees go up substantially, there is a clamour for leaving more money in the hands of private sector workers, who make up a bulk of the tax-paying middle class. "There needs to be immediate relief for individual taxpayers in the Budget to boost consumption and the economy," political analyst and commentator Amitabh Tiwari tells India Today Digital. "The 8th Pay Commission will see an increase in the pay scale for the central government employees, which in turn will help spur demand. BUDGET 2025-26 MIGHT ADD INCOME TAX SLABS FOR RELIEF The demand for relief comes amid rising inflation and at a time when the government's collection of income tax is higher corporate tax. While the government has constituted the 8th Pay Commission for government employees, relief for individual taxpayers will leave more cash in the hands of the middle class and help push consumption-driven growth of the economy.
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