Britain's Liz Truss Government Made A Big Cut In Income Tax, Know Details

Britain's new Lease-Truce Government on Thursday launched a new program of tax cuts and investment initiatives. The purpose of this exercise of the government is to bring the country's faltering economy back on track. The government has also reduced the basic rate of income tax from 20 pence to 19 pence under this program. It also abolished the 45% tax on income above £1,50,000.

Briefing the House of Commons about these changes, Finance Minister Kwasi Quarteng said, “The government wants to move forward with a new strategy in a new era focused on development. The government aims to achieve a medium-term growth rate of 2.5%. "We believe that high taxes reduce wages, delay investments, and adversely affect an organization," Quarteng said.

The government has decided to cut taxes by 45 billion pounds by the year 2026-27. At the same time, Paul Johnson, director of the Institute of Fiscal Studies on the government's decision to cut income tax, has said that for the first time in half a century, we have seen such large-scale tax cuts.

Johnson has said that the pound has reached the lowest level of the last 37 years against the dollar. Along with this, after this decision of the UK government, the bonds and FTSE 100 also reached the level last March. Along with cutting income tax, the government has also abandoned the plan to increase the corporation tax to 25 percent. It will remain at the current 19%.