Budget 2018 date: The much-awaited Union Budget is just around the corner. People, industry bodies and politicos are all waiting for the Modi government’s fifth budget. Finance Minister Arun Jaitley will present the budget in Parliament.
Budget 2018 date: The much-awaited Union Budget is just around the corner. People, industry bodies and politicos are all waiting for the Modi government’s fifth budget. Finance Minister Arun Jaitley will present the budget in Parliament. The Budget 2018 is crucial as this would be the Narendra Modi government’s last full-fledged budget before the big 2019 Lok Sabha Polls. The budget 2018 will also be the first one after the implementation of Goods and Services Tax (GST). There are various expectations from Finance Minister Arun Jaitley especially by the corporate sector of the country. There is a big demand to lower the corporate tax rates. Just days back Donald Trump introduced corporate tax reforms in the US, and this has surely mounted pressure on the Finance Ministry to do the same. “Corporate tax rate may be lowered to 28 percent in this year’s budget,” told Sonal Verma of Nomura to ET Now.
The global brokerage also expects Budget 2018 to increase allocation to MNREGA and crop insurance. The brokerage also expects definition of LTCG for equities to change from 1 year to 3 years. The move, if affected, would bring the holding period for shares in line with the similar holding period that already exists for unlisted shares and transactions in real estate. Nomura also sees budget 2018 setting the fiscal deficit target at 3.2 percent in FY19 from 3.5 percent in FY18.
Before the 2018 Budget, which is the fourth and the last full Budget of the present government, the pressure to act on what was promised in 2015 is mounting — especially after the United States passing the law to cut corporate tax from 35 percent to just 21 percent. The government did cut it to 29 percent for those companies which reported total turnover up to Rs 5 crore in FY15 and to 25 percent for newly incorporated domestic firms in the 2016 Budget. In the next Budget, the government relaxed tax rates for MSMEs and start-ups in the 2017 Budget but the initial plan of going from 30 percent to 25 percent is yet to be done.
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Corporate India has already put forth this demand in front of Arun Jaitley during the pre-budget consultation meeting. Besides, top banker Uday Kotak, too, has backed this demand, saying it is needed to boost animal spirits of the businesses and for government to boost their income. “I am a believer that as you reduce rates, income goes up for the government, and therefore, reduction in corporate tax in Budget 2018 is a little boost to animal spirits,” Uday Kotak said in an interview with CNBC-TV18.