New Delhi: The government aims to reduce taxes, but it cannot function effectively without revenue, said Union Minister for Road Transport and Highways, Nitin Gadkari. He urged industries to stop repeatedly demanding tax reductions, emphasizing the need for government funds for social welfare. Instead of lowering taxes, Gadkari advised industries to focus on cost-cutting measures without compromising product quality to strengthen India’s position in global trade.
On Monday, addressing industrialists, Gadkari requested them to stop persistently demanding tax cuts. He remarked that if the government reduces taxes, businesses will demand even more reductions, as this is human psychology. While the government is working on reducing taxes, it cannot function effectively without adequate revenue.
“Without financial resources, the government cannot run a welfare state,” Gadkari stated during an event. He pointed out that India’s logistics costs are significantly higher than other major economies. Currently, these costs stand at 14-16% of GDP, but the government aims to reduce them to 9% within the next two years, making India more competitive in the global market.
For comparison, logistics costs in China are 8%, while in the U.S. and Europe, they are around 12%. Discussing investment promotion, Gadkari highlighted the government’s efforts to encourage capital investment, which would create more job opportunities and accelerate economic growth.
“You are not just wealth creators but also employment generators,” he told industrialists.