India Inc welcomes budget, seeks clarity

Sunday, 2 February 2020

Sachin Menon, Partner and Head, Indirect Tax, KPMG in India said GST collections have matured over the last quarter. Unwarranted customs duty concessions and levy of cesses have been rationalised. 

Pune:  Industry leaders appreciated the announcements in the Budget. Arun Kumar, Chairman and CEO, KPMG in India said the Budget reiterated the government’s focus on upgrading India’s physical and digital infrastructure. “The Budget also aims to increase farmers’ and fisherfolks’ income by improving access to rural markets. The Budget has recognized the seminal role of logistics infrastructure in promoting investments, in reducing process-friction and inducing growth, by announcing the imminent formulation of a National Logistics Policy. In addition to providing INR 1.7 trillion for transport sector and INR 220 billion for renewable energy sector, there is a focus on mobilisng private capital.” 

Sachin Menon, Partner and Head, Indirect Tax, KPMG in India said GST collections have matured over the last quarter. Unwarranted customs duty concessions and levy of cesses have been rationalised. 

Founder and CEO of Kinetic Green and Vice Chairperson, Kinetic Group, Sulajja Firodia Motwani, said the Budget is practical. “However, we look forward to speedy and efficient implementation. There are some measures to attract foreign investments as well and a new optional income tax regime, for a feel good factor. DDT has been abolished but dividend taxed at the hands of the investor will pinch her or him. From an EV industry point of view, the Budget is neutral. FM has announced new scheme to promote automotive electronics and semi-conductors manufacturing which can aid EV component manufacturing. Budget also contains notifications on increased customs duty on EV imported in form of CBU/ SKD/ CKD, to encourage Make in India. We welcome this Budget,” added Sulajja. 

HP Srivastava, Vice Chairman, Deccan Chamber of Commerce, Industries and Agriculture said reduction in personal income tax rate and abolition of Dividend Distribution Tax will benefit people. 

Namit Bajoria, Director, Kutchina, said, “I welcome the moves proposed in the Budget. The proposal in bringing down litigation in Direct Taxation Scheme is a good move. The major relief for taxpayers is also welcomed. The digital refunds of duties and taxes to exporters, will help the country to be more export-oriented.” 

Founder, PrimaDollar, Tim Nicolle, said, “The new Nirvik scheme introduces high insurance cover for exporters at a reduced premium. Coming to the MSMEs, the announcement for the subordinate debt for entrepreneurs is a big positive and will help the MSME sector benefit in a massive way.” 

Founder and Managing Director, eJOHRI Shailen Mehta said, “Digital revolution plays a crucial role in growth of the Indian start-up ecosystem. Initiatives like online tax assessment, facial assessments, facial KYCs will provide the stack essential for growth of start-ups. Exemption of taxes on ESOPs will encourage companies to introduce ESOPs, which in turn will allow them to attract world-class talent while keeping employee costs in check.” 

CEO and Co-founder, MoveInSync, Deepesh Agarwal, said, “The setting up of an investment clearance cell will be a great step forward to promote entrepreneurship. The deferment of tax burden on ESOPs to 5 years will help start-ups acquire and retain high-quality talent. The allocation of Rs 4,400 crore to improve the quality of air is reassuring.”
CEO and Co-founder, Vedantu Vamsi Krishna, said, “The vision of making education accessible to the farthest corner of the country will greatly benefit students. The allocation to hone skill sets of teachers will impact quality learning. The allocation to BharatNet will have a deep impact on skilling rural India as it has the potential to open up online learning at remote villages. With better bandwidth Internet, a qualified teacher located in a metro city can impart live online classes to students in small towns, where there’s a dearth of quality education.”

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