Budget 2017: Auto major Maruti on Wednesday said that it expects Budget to support industry and manufacturing.
Budget 2017 may be presented on February 1. Many sectors are seeking a slew of tax incentives from Finance Minister Arun Jaitley to deal with the impact of demonetisation. Auto major Maruti on Wednesday told ET Now that it expects Budget to support industry and manufacturing. Yesterday, representatives of the financial sector also met FM Jaitley in a pre-Budget meeting. They also demanded higher capital infusion in the public sector banks. “There is need for full tax exemption for NPA provisioning by the banks keeping in view their profitability,” the bankers told Jaitley, according to a statement issued by the ministry. With deluge of deposits in the banking sector post demonetisation, bringing down deposits rates, bankers said some sort of exemption needs to given to senior citizens under the income tax Act so that they have a decent income through their deposits.
To incentivise digital payments, the bankers urged tax rebate to shopkeepers for using digital means and for better compliance. Same way, consumers may also be given a tax rebate if their digital purchases are more than a certain amount. They also sought exempting transactions of banking correspondents from the service tax. The financial sector representatives sought a provision in the Budget that if an insurance company or mutual fund employing a certain number of people increases the number of jobs by a certain degree, then 2-3% tax relaxation would be given to it.
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Meanwhile, Maruti also said that it hopes to see GST implemented sooner. When asked about demonetisation, it said, “We are seeing slowdown in retail sales on demonetisation but we expect December to be better.” The Cabinet, in September, chaired by Prime Minister Narendra Modi took the historic decision of scrapping a separate Railway Budget and merging it with the General Budget.