Subramanian Swamy advocates abolishment of income tax and hike in FD deposits

BJP MP Subramanian Swamy on Saturday batted for abolishing income tax, hiking interest rate on fixed deposits and lowering it on loans to spur economic growth.

"The main thing is that the income tax should be abolished. The rate on fixed deposits should be increased to nine per cent and the rate of interest on borrowings should be brought down to nine per cent as well. If these three steps are taken, things will improve," said Swamy, talking to reporters here.

He said he is also coming up next month with a book, suggesting steps to spur economic growth.

“A lot needs to be done for the economy. My book is coming out on September 5, in which I have explained what needs to be done,” he added.

Swamy made the remarks when asked if the steps taken by Finance Minister Nirmala Sitharaman would revive the growth.

In a bid to boost economy on a five-year low, the Centre on Friday announced a slew of measures, including the rollback of surcharge on foreign and domestic equity investors, a promise to review the super rich tax on high networth individuals, exempting startups from 'angel tax', a package to address distress in the auto sector and upfront infusion of Rs 70,000 crore to public sector banks.

To bolster consumption, the government has also persuaded banks to cut interest rates, a move that would lead to lower EMIs for home, auto and other loans.