Budget 2019: Startups demand funding friendly policies, lowering of taxes, removal of angel tax and more
The market experts are eying for favourable policies for several sectors and the new businesses need a road map and solutions to cure finance and tax related issues. The startup founders are seeking positive and friendly budget from government and are demanding some policies to support their businesses.
India is rapidly gaining pace to become a hub for new age technology and innovative businesses, with commendable growth in number of startups. Due to the vision and policies of the Modi Government, the startup culture has gained an immense boost in the past years. However, the re-election of this government has raised expectations of Indian entrepreneurs and they would be seeking positive resources from the upcoming union budget 2019-20, that is to be presented by new Finance Minister, Nirmala Sitharaman on 5th July. Also the new businesses are expecting the government to announce a budget that will encourage the entrepreneurial energy in the economy leading to more jobs and development.
Divya told Zee Business Online, ''A lowered and simplified tax structure is what would be the first step towards initiating innovation and boosting entrepreneurship. The re-elected government shared its aim of establishing at least 50000 startups in India by 2030 as they are believed to be more crucial for the economic growth of the country when compared to large companies.''
The market experts are eying for favourable policies for several sectors and the new businesses need a road map and solutions to cure finance and tax related issues. The startup founders are seeking positive and friendly budget from government and are demanding some policies to support their businesses. The Modi government had also made certain promises prior to this election, also the Interim Budget presented in February had few supportive announcements for new age enterpreneurs. While it would be interesting to see the government's mood as the final budget will be presented on July 5th.
India has moved several ranks up in the ease of doing business index by the world bank and also in terms of the number of startups. All this was mainly due to the startup India initiative by the NDA government. The future growth prospects of this initiative would be dependent on the policy layout of the coming union budget. Also the government's aim to establish 50,000 new start-ups by 2024 can propel the authorities to announce the friendly budget this year, added Divya.
Commenting upon the expectations from Budget, Tabby Bhatia, Director of Voganow said, ''We expect the government to make India a preferred hub especially for startups as the government promised to establish around 50,000 new start-ups by 2024 and also to bring better policies for us to strengthen our business. Tax woes like Angel Tax continue to haunt us, so our main wishlist for government to remove it from the budget. However, the startup ecosystem is only expecting the government to provide for simpler regulations surrounding the tax charges (corporate taxes, and stable economic policies).''
The new innovators are also expecting some policies that could help them with the processes like initial funding, taxation, employment, operations, growth, networking etc. The industrial experts are expecting a financial friendly budget that can help the Startup India mission to become a massive success, curbing the ongoing market slowdown and further helping Indian economy to improve on the fronts of poverty and unemployment.
Sharing startups demands, Juergen Hase, CEO, Unlimit mentioned, “The re-election of the Modi Government ensures steadiness of the government’s gripping vision for India to boost the economy and put the country in the forefront of the technology sector by 2030. We expect the government to announce a budget that will encourage the entrepreneurial energy in the economy leading to more jobs and development. We’re hoping the forthcoming Union Budget will boost the start-up eco-system by abolishing the Angel Tax and introducing a single GST registration.''