The Indian government is toying with a plan to ease the tax burden on the middle class in the upcoming February budget. Word on the street is that it could reduce income tax for individuals earning up to 1.5 million rupees ($17,590) annually. To provide some much-needed financial relief and boost consumption as the economy shows signs of slowing down. This move could be a game-changer for millions of taxpayers, particularly those living in cities, where the cost of living has been steadily rising. But there’s a catch: the tax cut would only apply to those who opt for the 2020 tax system, which does away with certain exemptions, like housing rental deductions. In this system, income ranging from 300,000 to 1.5 million rupees is taxed at rates between 5% and 20%, with any amount exceeding that subject to a flat 30% tax. It’s a simpler but less forgiving framework than the older one, which allows for more deductions but at higher tax rates. India’s income tax revenue largely comes from the wealthier few, particularly those earning over 10 million rupees a year, who pay the highest tax rate of 30%. But with growth slowing—India’s economy expanded at its slowest pace in seven quarters between July and September—and inflation squeezing urban consumers, the government may see this as a way to inject some life into the economy.