The people of Britain are worried about the tax. In view of this, Sunak has said something that gives relief to the people. Britain’s next prime ministerial candidate Rishi Sunak of Indian origin has promised to reduce the basic rate of income tax by 20% by 2029.
This is a major change in his tax policies as Sunak has been insisting since the beginning that he will stay away from lucrative policies. At the same time, Sunak was never in favor of reducing the tax, but three days ago i.e. on July 29, Sunak changed his policy and promised to do away with the Value Added Tax (VAT) on the energy bill. Now they are promising to reduce income tax.
The reason for Sunak’s change of strategy
is the competition between Liz Truss and Rishi Sunak for the Prime Minister’s chair in Britain. On July 26, there was a TV debate between the two leaders. Till then Sunak was against reducing the tax rate. In the debate, Truss had said that she would reduce the tax rate on becoming PM. To this Sunak said that Truss’s tax-cutting plan would kill millions of people in misery and the Conservatives would have to pay the price in the next election. After this debate, the truss got an edge.
Now Sunak seems to be lagging behind the truss by a huge margin. Therefore, these policies of Sunak on tax are being seen as a strategy to go beyond the lease trust. This is also believed to be because, 3 months ago, while being the Finance Minister, he refused to cut energy bills.
Sunak was also accused that while being the Finance Minister, he did not leave any stone unturned to increase the tax burden on the citizens.
Promising the biggest income tax cut
by 20% in the basic rate of income tax, Sunak said his focus is to bring down inflation. He believes that it is necessary to be careful about the economy. At the same time, the cut in the basic rate of income tax will be the biggest income tax cut ever in the UK.
Britain will get a new PM on 5 September
The post of PM is vacant in Britain since the resignation of the then Prime Minister Boris Johnson on 7 July. On September 5, about 2 lakh members of the party will vote through postal ballot. Only then will it be decided who will be the next prime minister of Britain.