For the Bharatiya Janata Party (BJP), the first 100 days would see its government initiating measures to bring back Indian money stashed away in secret tax havens. LK Advani, the party’s prime ministerial candidate, has promised to appoint an expert committee to pursue and track the Indian money in those tax havens.
If voted to power, the BJP will immediately resume the employment-generation through massive investments in infrastructure projects by nursing agriculture back to health, and by making credit easily accessible to industry.
The party has announced it will bring down interest rates for home loans so that housing becomes affordable and hepls in reviving the stalled real estate sector, which has witnessed huge job losses.
It will put in place a low-tax, low-interest regime so that people have more money and their purchasing power increases. Towards this end, income up to Rs 3 lakh will be exempt from income-tax. Women and senior citizens will receive an additional exemption benefit of Rs 50,000. In the first 100 days of coming to power, the party will make the income of all senior citizens by way of pension exempt from income-tax.
To incentivise savings, all interest earned on bank deposits other than by corporate houses and those who have business income shall be exempt from tax. The party has resolved to dispense with clubbing of agricultural income with other sources of income for determining tax liability on other income. It has also decided to abolish the Central Sales Tax (CST) and Goods while it will rationalise the Services Tax (GST) between 12 and 14 per cent.
This apart, the capabilities of the manufacturing sector will be enhanced by easing credit availability. Reform will be introduced to improve productivity and greater capital formation. SMEs will be the preferred route for employment creation: the criteria for classifying SMEs will be reviewed.
More From This Section
There will be countervailing restrictions on foreign companies operating in India, especially in the services sector, which, on account of domestic laws of their respective countries, have introduced restrictions on hiring Indian employees with valid work visas.
This apart, the BJP will strengthen the regulatory bodies, which are supposed to monitor the performance and balance sheets of companies, to prevent corporate fraud.