Export sector expect handholding in upcoming Union Budget : FIEO President

Marcus Newton
February 1, 2018

By delivering the Budget speech in Hindi, Mr Jaitley will not only become the first Union FM to do so since Independence, but this will also help in establishing the fact that the Budget is going to be an aam budget for aam admi and therefore a Hindi speech will have a greater connect with the people for which it is intended, especially the farmers.

- A long-pending demand of the salaries class is an increase in the amount of tax deductions allowed on medical insurance premiums.

Finance Minister Arun Jaitley is all set to present the Union Budget & Railway budget on Thursday. While the Congress and the Left parties moved a motion for adjournment, the government went ahead with the budget.

- The real estate sector is expecting a cut in the GST rate for under-construction projects, whose flats are now taxed at 12 per cent on sale. Education and Health sectors might also get a boost in this Budget in terms of allocation. Economic growth in the fiscal year ending March 31, 2018, may slow to 6.75 per cent and then may rebound to between 7 per cent and 7.5 per cent in the next fiscal, according to Economic Survey 2017-18.

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"To facilitate cross-border trade and investment without the barrier of double taxation, the Governments of India and the United States should reaffirm the shared commitment to improving tax dispute resolution. The housing finance companies like us have a key role to play in boosting the government's efforts towards affordable and low-priced housing in metros as well as in tier-II and III cities", said Monu Ratra, ED and CEO, India Infoline Housing Finance Limited. The budget is likely to work on strengthening of alternate funding avenues such as corporate debt market, foreign investments in infrastructure projects, Infrastructure Investment Trusts (InvIT) and National Investment and Infrastructure Fund (NIIF). Since the big corporates are not generating enough jobs in the country, it is important to provide sops to this sector.

"The income tax department has received a lot of request on this and there has been quite a few rounds of discussions as to why one needs every individual to submit their details in a technologically advanced era when information about a taxpayer is available at the click of a mouse", a senior official said, as mentioned in a report by News18.

But he has to do all this while sticking to the road map of narrowing one of Asia's largest budget deficits, as failing which, India may fall on the wrong side of global investors and credit rating agencies which had late past year handed out a rare sovereign upgrade. The government can announce some steps to strengthen basic facilities and resources for education.

REVIVING BANKING SECTOR: Banks struggling with the financial crisis and NPAs have great expectations from the budget. The government had raised excise duties on petroleum products during the year due to lower crude prices. Will 2018-19 see Budget for all remains to be seen.

Other reports by MaliBehiribAe

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