This budget is going to be an important statement of policy and implementation, as well as the direction by the government. As we face a difficult global environment, this budget should ensure that the domestic consumption and investment is accelerated, and global competitiveness is supported. At the same time the opportunity as provided by falling oil prices should be taken maximum possible advantage. Thus, it should be possible that within the bounds of fiscal prudence, a growth liberating budget is delivered.
“As entrepreneurs, we would expect simplification and rationalization of taxes and their administration. We expect bold steps in direction of reduction of tax on business as was promised last year. At the same time, further steps to reduce unnecessary scrutiny and litigation need to be taken. As GST is still a bit far, some advantages can be gained by harmonizing and unifying, to some extent, excise, service tax and central sales taxes. One example is incidence of service tax and sales tax on software—perhaps a rule which clearly postulates one tax on one transaction, would go a long way in simplifying and reducing costs of inputs and compliance.” said Mr. Manish Godha, Chief Executive Officer of Advaiya.
“Infrastructure investment has to be a priority. Effective governance measures to ensure efficacy of spend in various schemes like Smart Cities, etc., have to be established so that returns on infrastructure investment can be reaped for many years providing sustained growth advantage to the economy. Technology is a big factor, thus the need is to mandate use of effective technology tools for program monitoring, investment decision making, project management and quality management. Of course, this has to be supported by investment to bolster connectivity and communication reliability.” he added.
Benefits to salary earners with revival of standard deduction, and further tax advantage on spend on education, skill building, or for working in small businesses or start-ups, would go a long way in spurring consumption as well as intent growth building behaviour. Attracting talent for start-ups and small business has always been a challenge, and tax concessions for such employees would be a step towards creating a level playing field for smaller businesses, and also offset, to an extent, the risks and uncertainties of working in a start-up or small businesses for talented professionals.