The Modi government has been giving lots of incentives to boost the growth of various industries. However, industry leaders feel that lots more remain to be done. For instance, to provide support for the development of firms, the taxation regime needs to be eased out for businessmen and start-up entrepreneurs across all industries.
In the beginning of 2017, however, India Inc has seen a slow start because of the impact of demonetisation which has affected industries at various levels.
To have a bit of understanding what people across the industries are expecting from the budget, here are some of the expectations from the wedding & matrimonial, entertainment, real estate and IT industries.
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Wedding and Matrimonial Industry
In 2017, as an impact of demonetization, the wedding & matrimony industry will move towards a structured and organized pattern. Also, since the rate of interest for personal loan will be reduced, it will reduce the overall expenditure of those taking loan for wedding. As per Mr. Arun Jaitley, interest rates will further reduce in the coming months.
People who are in catering, decoration, floweriest and other businesses, who are directly or indirectly connected with buying goods, will be benefited. After the implementation of GST, it will be One Tax One Country, and all will be benefited from this. “GST will also impact the overall industry. After its implementation there will be one type of standardized taxes. So you need not to pay different taxes in different states. It will be good news for those who are into this matrimony business,” says Gorav Aggarwal, President and Founder, Lovevivah.com.
Finance Minister Jaitley is also mulling over service tax. If he reduce the service tax, it will largely impact the industry. “Those who book hotels, banquet halls and other venues for wedding, pay huge amount as tax, somewhere between 14% -35%. It will reduce the overall cost of wedding and give a sigh of relief. He has not mentioned that he is going to reduce it or increase it, but still the point is under consideration,” says Aggarwal.
In the past few years we have seen that the entertainment industry has grown at an immense pace. Movies revenue collection has gone so high because of which the earned revenues are overburdened with heavy taxes. To rationalize the taxation policy for entertainment industries, there is a need for uniformity in policy across states.
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“We expect that with the implementation of GST, cinemas will benefit the most as the market will be unified and there will be a relief at escaping 29 different state markets and their tax. We also expect a quick clearance of licenses and other NOC – single window clearance, and also improvement in infrastructure development,” says Tinku Singh, Group President and Chief Strategy Officer, SRS Cinemas.
People buy property for various reasons like availing tax benefits, stamp duty relaxation, capital gains deductions, etc. The real estate sector contributes a major part of the GDP. The schemes launched by PM will lift up the sector to an extent in the coming years. “We are expecting that a certain part would be reserved for infra development specially in tier 2, tier 3 cities falling under AMRUT scheme. Apart from this, GST implementation, removal of various taxes, stamp duty relaxation, HRA slab revisions, single window clearance must be amongst the highlights of the budget. This will allow people to look at real estate as an attractive market for investment purposes too,” says Dr. Anil Jindal,Chairman, SRS Real Estates.
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The IT industry has witnessed lots of innovations and new technologies in recent months. The regime of start-ups has shown good growth. To ensure a faster development of new and innovative products, the government should take certain measures to streamline the taxation policies for them too. “The upcoming budget is crucial for honest taxpayers and we look forward to a low taxation regime, which will simultaneously promote a robust digital ecosystem. Moreover, the government should simplify the tax regime for the IT industry and startups to foster innovations and boost a healthy start-up environment in the country. Also, the union budget 2017-2018 should focus on digital inclusion across industries. Simplification of overall processes across all government infrastructures will be key for the success of India and I believe they should ensure that sufficient budget is allocated for the same,” says Aniketh Jain, CEO & Co-Founder of Solutions Infini.