Pranab disappoints; no tax sops

External Affairs Minister Pranab Mukherjee, who is also managing the finance ministry, said in Parliament on Monday while presenting the Interim Budget for 2009-10 that tax rates must fall and our ability to pay taxes must rise.

However, he disappointed big time by not announcing any relief in taxes or change in the tax structure to bring relief to the common man.

So, in effect, the tax structure for the common man remains what it was the last year.

He did not announce any major sops and stuck to highlighting the achievements of the United Progressive Alliance government and just reading out a lackluster statement of accounts and achievements of the government over the last five years.

The stock markets sank as Mukherjee's speech continued, especially concerned over no fiscal measures or duty cuts or tax sops being announced.

Of particular concern to the industry and the markets is the rising fiscal deficit and the fact that the nation will have to wait for a full Budget to get any relief.

Source : Rediff.com.