Govt unlikely to go for personal income tax cut amid fiscal stress, lower tax realisation

New Delhi: The government is unlikely to moderate personal income tax rates for the rich due to fiscal stress on account of lower tax realisation amid a slowdown in the economy, sources said.

The pressure is mounting on the government to cut personal income tax rates to boost demand, especially after the finance ministry reduced the corporate tax rate by up to 10 percentage points.

According to sources, personal income tax rate cut is difficult at this juncture due to multiple factors like a slowdown in the economy, lower tax realisation and subdued non-tax mop up.