Pre-Budget Expectations from Union Budget 2019:
India Union Budget 2019 Expectations: Prime Minister Narendra Modi has from time to time pitched for boosting startups in India. However, on the ground-level, the startups community is facing a few issues and has urged that the central government address them in the upcoming Budget 2019. Entrepreneurs and startup heads are expecting favourable announcements in Union Finance Minister Piyush Goyal’s budget speech on February 1 in Parliament on Friday.
Startup companies want the central government to scrap the ‘angel tax’ in Budget 2019 citing that it has been a problem for both investors and startups. Aprameya Radhakrishna CEO and Co-founder at Vokal and Mayank Bidawataka, Co-founder at Vokal in Startup space said startups are employment generators and investments need to be incentivized. Startups expect the central government removes the startup tax in all forms from the budget. There should not be any subjectivity when looking at funds raised by startups and the onus is on the government to find ways to separate the few questionable transactions from the thousands of genuine startups, Radhakrishna and Bidawataka.
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In Budget 2019, Information Technology (IT) sector wants the central government to focus more on Smart cities and Digital India initiative in order to shape the IT infrastructure and increase adoption of technology to encourage digitization, said K. G. Prabhu, Chief Financial Officer, DIGISOL Systems. Another crucial thing that startups want from the Modi government in Budget 2019 is consistency in tax laws and compliance is very important to allow start-ups to plan and execute their intentions, said Akshaya Kamath, Director at Pioneering Ventures.
Last year Prime Minister Narendra Modi announced that the central government has created Rs 10,000 crore fund of funds to provide assistance to startups. Budget 2019 is important for the ruling dispensation as it is the final budget before the Lok Sabha 2019. The upcoming union budget also assumes political significance as the government’s announcements will be put under scanner by opposition parties.