Budget 2020: Government should rationalize GST rates on live entertainment, says BookMyShow's Mitesh Shah
Budget 2020: Rationalizing GST rates on live entertainment will help attract investments and make India a world class entertainment destination - believes Mitesh Shah, Head - Finance, BookMyShow - as we move closer to this year's Union Budget.
Budget 2020: Rationalizing GST rates on live entertainment will help attract investments and make India a world class entertainment destination - believes Mitesh Shah, Head - Finance, BookMyShow - as we move closer to this year's Union Budget. Shah told Zee Business Online that the initiatives by the government in 2019, helped businesses to grow while enabling capital infusion across several sectors.
"Over the last year, the Government has been on a steady path of reforms introducing varied measures to spur business growth while also enabling capital infusion across several sectors. The reduction in Corporate Tax has been especially significant, signalling an improved business sentiment," Shah said.
He added that the industry expects more progressive and pro-growth reforms in Budget 2020, that are especially related to the Goods and Services Tax.
"The growth of the economy has been a long standing concern and to help boost this, we urge the government to rationalize GST rates on live entertainment i.e. admission to entertainment events including live music concerts and sporting events through structured slabs. Given the vast growth potential of the out-of-home entertainment sector and its impact in boosting tourism and the economy at large, reduction in GST rates in this field will help significantly in attracting investments as also give a much-needed fillip to the industry as we look towards making India a world class entertainment destination," he said.
Since coming to power in 2014, the Modi government has been pushing startups by introducing several measures for them and Shah hopes that it continues. He said that the government should allow startups with a turnover between Rs 25-100 cror to claim exemptions under section 80-IAC of Income Tax Act.
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"We hope that the budget will also look at giving an impetus to startups with a turnover between Rs 25-100 crore enabling them to claim exemptions under section 80-IAC of Income Tax Act. The move will go a long way in bolstering India’s entrepreneurial ecosystem," he said.
Adding to the calls of change in the income tax slabs, Shah said that full tax rebate should be given to individual taxpayers with an income of up to Rs 10 lakhs to increase the purchasing power parity of the Indian consumers.
"This will be a significant step in aiding the country’s economy to hit the $5 trillion mark over the next few years," he added.
Similar demands were made last year, when the then interim Finance Minister Piyush Goyal had announced a rebate for taxpayers with an income of up to Rs 5 lakhs, without making a change in the tax slabs. However, no announcement was made in this regard when the Modi government returned to power later in the year and presented the first full budget of its second term.
Budget 2020 will be presented by Finance Minister Nirmala Sitharaman in the Parliament on February 1.
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