Union Budget 2019: Assocham President B K Goenka suggested that in the Union Budget, the central government must take steps to encourage investment.
Budget 2019 of the recently elected Modi government will be tabled in Parliament on July 5. Ahead of this crucial economic exercise, officials of key industry bodies such as Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce and Industry (FICCI) and the Associated Chambers of Commerce of India (Assocham India) met Finance Minister Nirmala Sitharaman and discussed as well as suggested five-point agenda on which the central government can focus on Union Budget 2019-20.
Here are suggestions presented by India Inc for India Budget 2019
1. Drawing FM Sitharaman’s attention on Dividend Distribution Tax (DDT), CII President Vikram Kirloskar suggested that Modi government should bring down DDT from existing 20 per cent to 10 per cent. He also said that DDT should not be taxed at the hands of the investor. Former Finance Minister Arun Jaitley had levied a Dividend Distribution Tax, to be charged on dividend incomes earned from stocks and mutual funds held by investors.
2. Assocham President B K Goenka suggested that in the Union Budget, the central government must take steps to encourage investment. Goenka said the Centre can permit 100 per cent depreciation in the first year of investment.
3. Assocham president B K Goenka also raised the much-discussed issue of Goods and Services Tax (GST), saying that the central government must simplify the tax regime which was implemented from July 2017. Goenka proposed that in Budget 2019, the central government can simplify the GST by moving to a dual-rate system of 8 per cent and 16 per cent slabs, instead of a 4-tier tax system now.
4. FICCI has demanded changes and revisions in personal Income Tax and Corporate Tax. FICCI has suggested that the Modi government raise the minimum income threshold for the highest 30 per cent income tax slab to Rs 20 lakh per year. Apart from the Income Tax, FICCI has asked for reduction in corporate tax to 25 per cent. It said that the tax burden on Indian companies was quite high.
CII President Vikram S Kisloskar suggested that in Budget 2019, the central government must announce a Taxation regime (Direct Tax) where the highest rate should be fixed at 18 per cent.
5. FICCI stated that the central government must provide a fillip to the infrastructure sector in Budget 2019 by announcing several major projects pertaining to sub-urban metros, airports, roads and highways.
India Inc also submitted suggestions on special economic zones, land reforms, investment in research and development, industrial policy, tapping potential in the tourism sector, Foreign Direct Investment (FDI) and Capital Gains Tax.
FM Sitharaman assured that during its first tenure (2014-19), the Modi government went for simplifying and rationalising existing rules. She advised that the industry should try to accommodate more workforce to reap the benefits of demographic dividend. Sitharaman will be the first full-time female Finance Minister in India to present the Union Budget in Parliament.