Why did the government implement the new tax regime?

​The introduction of the new tax regime in India, as outlined in the Finance Act, 2020, was aimed at simplifying the income tax structure and providing taxpayers with an alternative system that offers lower tax rates. The government has implemented the new tax system to give opportunity to the taxpayers to pay the least amount of tax on their income. Since the new regime is optional, taxpayers can compare them between the old and new regime and select the one that will help them save money on taxes. About 70 out of 100 exemptions have been eliminated under the new tax system in an effort to simplify tax filing for taxpayers and make it simpler for individuals to determine their own tax liability.