Budget 2019: From corporate tax rate to credit to MSMEs, financial institutions want government to deliver on expectations
From real estate to Micro, Small and Medium Enterprises to financial institutions, every sector wants some benefits and sops to be announced for them in the Budget 2019.
Budget 2019: The final budget of the Modi government's this term will be presented on February 1. While salaried class wants income tax exemption limits to go up, the industry wants relaxation in the corporate tax rate. Though this will be interim budget, the expectations are high from all the quarters. From real estate to Micro, Small and Medium Enterprises to financial institutions, every sector wants some benefits and sops to be announced for them in the Budget 2019.
Kailash Baheti, CFO, Magma Fincorp, said that industry wants the Finance Minister Arun Jaitley to deliver a corporate tax rate of 25% this year for companies.
"The Finance Minister had promised reduction of the corporate tax rate to 25% over a 4 year period in the budget 2015 and the industry expects him to deliver a Corporate Tax rate to 25% this year also. On GST front, if we scan through most of the decisions of the Authority for Advance Ruling for GST, we would find that the decisions are pro revenue. There are instances, where the AAR has taken a diagonally opposite view to the FAQs published by the Government for GST implementation. The AAR needs to shed its ultra-cautious approach and take a pragmatic and correct stand on each matter where the Authority needs to deliver a decision."
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On the other hand, Varun Burman, founder, zipNACH, said that he expects the government to announce tax sops on the electronic transactions.
"In line with the government policy of reducing the usage of cash in the economy, we would like the government to announce tax sops on the electronic transactions which will increase the flow of business towards electronic transactions. Also, we need some steps on formalizing the role of Aadhaar in financial transactions," said Burman.
Burman also said that he would like to hear some relaxation for NBFC which may allow them to extend loans more easily and effectively.
"We would like the government to announce a clear framework of norms around the digital lending space to formalize the industry. Currently, it is being driven in a very haphazard manner," said Burman.
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Satyam Kumar, co-founder and CEO, LoanTap, said he wants the finance ministry to work on enablement for FinTech and NBFCs who make last mile credit available to MSMEs.
"Credit availability is the backbone of a growing economy. Liquidity squeeze and its impact on small borrowers and MSME is still fresh in our memory. Naturally, we want finance ministry to work on enablement for FinTech & NBFCs who make last mile credit available to MSMEs and small borrower. The sector is grappling with serious liquidity squeeze and same should be addressed systematically through budgetary enablement. In nutshell, similar to NHB, SIDBI & NABARD, the government can set up a refinance organisation for NBFCs," said Kumar.