Union Budget 2019-20 Pre Budget Expectations: The industry is pinning hopes on Finance Minister Nirmala Sitharaman to dole out sops so as to revive business amid the ongoing economic slowdown. The consumption sentiment, which has remained weak for sometime now, also needs a push.
Pre Budget Expectations 2019: With just hours left for Indian Union Budget 2019 to be presented in the Parliament, people, businesses, companies, organisations and all other stakeholders are keeping their fingers crossed, to see whether their demands will be met or not. The industry is pinning hopes on Finance Minister Nirmala Sitharaman to dole out sops so as to revive business amid the ongoing economic slowdown. The consumption sentiment, which has remained weak for sometime now, also needs a push. Here we have a look at the major demands of various industry bodies:
Assocham: The basic exemption limit for an individual income tax payer should be raised to Rs 5 lakh from Rs 2.50 lakh at present, in the backdrop of inflationary impact over the years, industry chamber Assocham has said. It has suggested this in a proposal to the government as part of its pre-Budget memorandum.
PHD Chamber of Commerce: PHD Chamber has pitched for cutting corporate tax to 25 per cent, and raising income tax exemption limit for individuals to Rs 3.5 lakh per annum in the forthcoming Budget. In a statement, PHD Chamber of Commerce and Industry President Rajeev Talwar said it looks forward to a “dynamic, inclusive and pragmatic budget” on February 1.
CII: A timeline for a Taxation regime (Direct Tax) needs to be announced where the highest rate should be 18 per cent, in addition to removing all exemptions and not doing any kind of grandfathering, the industry body said.
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FICCI: There is a need for reducing the interest rate by at least 100-150 basis points since the cost of doing business is too high in India, the industry body said. The corporate tax rate too must be cut for all the companies to 25% from the current 30%, it added. There is also a need to review the MAT structure, which is too high, along with further administrative simplification in the GST and other laws to improve the ease of doing business scenario is also required, it noted.
CAIT: The traders’ body expects that the government may announce major policy initiatives for SMEs (small and medium enterprises) to free them from the clutches of multiple laws and authorities. It also expects the government to create an enabling environment for them to become competitive to face global challenges, and provide better export opportunities.
CREDAI: The real estate body had recommended that registration under RERA should be allowed once the basic or primary approval of building plans has been obtained by the promoter, with the secondary approvals such as height clearance from Civil Aviation Authority or environmental approval from MOEF being covered under Section 4(E).
Bharat Krishak Samaj: Among the many issues to be addressed, the agri body says that the government can start with reforming food-processing units, promoting agriculture research, and involving more women in paid agricultural work. It also wants it to come up with policies to increase farmers’ income.
NBFC sector: The Non-Banking Financial Companies (NBFC) capital crunch has been negatively impacting the developer community and the real estate sector as a whole. NBFCs had come to be the primary lenders for most builders and developers in the last four-five years. The government needs to take fiscal measures to address the worsening NBFC liquidity crisis. Permission to issue tax-free bonds to raise capital will be a prudent step in this direction, Shishir Baijal, Chairman & Managing Director at Knight Frank India said.