Budget 2019 expectations: 5 major expectations from five different sectors
Budget 2019 expectations: Removal of Angel tax for startups, increase in tax benefit under section 80C and change in GST rates are among the major demands of the industry from Union Budget 2019 which is set to be presented by finance minister Niramala Sitharaman on Friday. This is the first budget of the second term of Modi government and will give a clear view of government's stance going forward. Ahead of the Budget presentation, here is a look at what major sectors are expecting from it:
Puneet Arora, CEO, AutoFurnish
"Our first expectation as what industry is expecting that the GST on Automobiles & Automobile accessories should be reduced from 28 percent to a more rational level of 18 percent at a policy level. In today’s scenario, Car is not a luxury or sin product but it’s a necessity in today's metropolitan lifestyle which badly hit the pocket of middle and upper middle class. Furthermore, as the auto industry is really looking forward to a comprehensive policy paper on the phased introduction of electric vehicles in India. We expect that with introduction of electric and hybrid vehicles which will give new evolution to auto industry and will support aftermarket accessories."
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Monish Anand, Founder, and CEO, Shubh Loans
“I would recommend that the budget grant financial institutions access to short term capital as doing so will allow fintech companies to scale up faster and serve more retail customers. I would also request the government to grant greater clarity and direction with respect to eKYC norms and elucidate how such norms can be met using Aadhaar cards. A greater push towards digitalization of financial services is also essential to allow the financial services sector and the broader economy to grow. The budget should consider the benefits of digitalization and renew a digital push. Digital transactions are secure and ease processes, for this reason, the government must consider bringing back Aadhaar based e-sign and e-NACH transactions. Finally, I would encourage the government to fix the stamp duty rate applicable to digital lending accounts”.
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Sameer Nayar, Founder & CEO, BuildSupply
"From a policy perspective, we expect the new finance minister to look closely at how the institutional lending scenario in the real-estate and construction industry can be improved specifically with regards to public sector banks and NBFCs. This will spur lending and kick-start growth. We would also expect the finance minister to focus more on affordable housing – by improving its scope and scale to benefit buyers and builders alike. Secondly Budget 2019 also needs to give a nudge to the ambitious ‘Smart Cities Programme’. The lack of planning in terms of providing the infrastructure that meets the growing needs of Indian cities is a roadblock that requires immediate attention. Overall, with Hon’ble Finance Minister Nirmala Sitharaman at the helm, we expect Budget 2019 to be more inclusive and structured from the ground-up to ensure that benefits pan across all constituents."
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Indroneel Dutt, CFO, Cleartrip
"We are optimistic and hopeful that the government will continue to be open-minded and maintain the impetus of its past initiatives while bringing necessary reformations to further enable the aviation sector. The Regional connectivity Scheme titled UDAN needs particular attention and allocation in this Budget. Increased digital penetration in the last few years has been one of the biggest contributors to the rise of the Indian travel industry. So, we expect the budget to sustain and accelerate India’s digital journey. We also hope that the Government will bring necessary provisions to accommodate four different slabs under ‘One GST Rate’ in this budget. Simplifying input credit mechanism on air and accommodation services including big-ticket transactions like travel bookings, along with processes like GST filing, will provide a fillip to the sector. As this sector is one of the most organized and tax compliant industries in India, we further hope that the Government will take necessary actions to remit or remove TCS entirely. This will alleviate the unnecessary financial burden on the airlines and the OTA’s which will translate to passengers getting superior aviation services at lesser fares."
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Saurav Goyal, CFO, Money View
"The Indian government is taking numerous positive proactive steps to create a stronger ecosystem for the nation’s vibrant start-up market. Yet beyond physical spaces and support systems, the policy ecosystem must also be shaped to encourage risk-taking, innovation and growth. The Government as part of the budget should provide necessary clarity in terms of taxation norms and make a requisite change in the policies in accordance with the latest business practices, post factoring another regulatory requirement. The way forward on policy-making in India must follow a truly consultative and multi-stakeholder model that ensures a wide representation of interests at all stages of the process. This not only complies with international best practices but will also allow India to balance its national interests with access to global markets.
Image source: PTI