Finance Minister Nirmala Sitharaman said on Tuesday that she wished the taxes could be brought down to almost nil, but India’s challenges were severe and had to be overcome.

While speaking at the 11th convocation ceremony at the Indian Institute of Science Education and Research, Bhopal, the minister emphasised the need to fund research and development. She added that her role as the Finance Minister was to generate revenue, not to trouble people.

“Tax revenue is crucial for funding India’s research and development. The government is committed to generating revenue without burdening the people. India’s taxes fund critical sectors like renewable energy and innovation, and despite challenges, India continues to invest heavily in transitioning to renewable energy,” she said.

The Finance Minister said that a thorough review of the Income Tax Act of 1961 will be conducted, aimed at benefiting the middle class. The review is expected to be completed within six months.

She said that taxpayers could save up to Rs 17,500 with the revised tax structure.

The Finance Minister was speaking in the context of India needing to use its own funds to fulfil its commitment to the energy transition, as the funds promised by ‘the world’ was yet to come.

She said that India cannot afford to wait for money which will come from somewhere else.

“India didn’t wait. The promises made in Paris (Paris Agreement) were fulfilled with our own money. There are times when, as Finance Minister, it demotivates me to answer questions about why our taxes are as they are and why they can’t be lowered,” the minister said.

The Finance Minister stressed that the money being collected through taxation is being put into funding for research and development in the country. She gave the example of schemes such as the Anusandhan Kosh announced in the interim budget for long-term financing in sunrise sectors.

While urging the students of IISER to come up with innovative ways to help India progress towards ‘Viksit Bharat’ and offer speedy solutions for climate transition, she said, “My job is to generate revenue, not to trouble people, I assure you.”

She further urged the students to come up with solutions for the storage of energy coming from renewable sources.

“I seek a very learned audience — graduates and PhD holders — to understand India’s challenges. I have cited renewable energy and global energy as examples of sustainable sources crucial for a growing country like India,” she added.