Budget 2018: Unlocking the door to ‘New India’
The Union Budget of 2018 has given a massive thrust to structural reforms with the vision of fast-tracking our country’s progress. It is an attempt to take forward the growth momentum after the implementation of crucial reforms such as the Goods and Services Tax (GST) and demonetisation. There’s been a hue and cry among the elite about how the budget is socialist and targets the vote bank with an eye on the 2019 election.
Neel Ratan
Partner and Leader,
Government and Public Sector
Real estate - more than just brick and mortar
You might still remember your new year’s resolution but may not remember much of Budget 2018, except, of course, LTCG tax on listed shares (courtesy: stock market fluxes). Unlike some of the previous budgets, this year’s budget lost steam way too quickly. This is not necessarily a bad record to set as not every budget has to involve a series of dramatic events and reactions.
Bhairav Dalal
Partner
Tax and Regulatory services
Geared up for inclusive growth
This year’s Union Budget has quite a few positives for the manufacturing sector.
- The government’s continued focus on developing infrastructure in roads, railways and freight corridors will provide a good boost to the manufacturing sector.
- Revamping of the online loan sanctioning facility and the intent to introduce measures to manage non-performing assets (NPAs) and stressed assets for micro, small and medium enterprises (MSMEs) will increase financing and ease the working capital challenges in the MSME segment.
Bimal Tanna
Partner and Leader,
Industrial Products
Budgeting for growth
Union Budget 2018 was presented by Finance Minister on February 1, 2018. For assessing the takeaway points for FinTech sector and payments industry and the overall way forward, we view the budgetary event as an important milestone in the government’s push towards digitisation, rather than in isolation.
Vivek Belgavi
Partner and Leader,
FinTech
Boost in Rural demand and promoting ‘Make in India’
Budget 2018 holds certain key themes for the automotive industry. As expected, there is a significant push for rejuvenating the rural economy and improving economic development through better infrastructure connectivity. The government has also provided a clear signal of encouragement to Make in India by increasing the customs duty rates on completely knocked down (CKD) and certain component imports.
Kavan Mukhtyar
Partner and Leader,
Automotive
Media and sports kept out of the spotlight in Budget 2018
With the entertainment and media industry stepping up to support the government’s Digital India initiative, the industry expected policymakers to take measures to rationalise their transition to the digital ecosystem. However, with agriculture, healthcare, education and infrastructure taking centre stage in Budget 2018, other sectors receded into the background.
Frank D’Souza
Partner and Leader,
Entertainment and Media
Budget 2018 decoded: Impact on transactions
The Finance Minister Arun Jaitley delivered Budget 2018 (his fifth) keeping in mind inclusive growth and taking a big leap forward with the ease of doing business agenda. Key direct tax changes (applicable w.e.f. 1 April 2018) impacting the corporate sector are:
- Rate of income tax: It has been reduced to 25% (from 30%) for companies having a turnover up to 2.5 billion INR (~38.5 million USD) in FY 16–17. This will immensely benefit the MSME segment, leaving enterprises with higher investible surpluses, which can be channelised into transactions and growth, as well as create employment opportunities.
Hemal Uchat,
Partner,
M&A Tax
The common man’s expectations from Budget 2018
The salaried class has had high expectations from the annual Budget for the past several years. But somehow the people never got what they wished for. In fact, those falling in the income group of 50 lakhs to 1 crore were adversely impacted last year with the levy of a 10% surcharge. This year, expectations are again building up and there is greater hope on account of several reasons. The first one is that this may be the last full-fledged Budget of this government and populist proposals may hence find a place in the Budget. Secondly, several reforms have recently been undertaken, such as GST and incentives for digitised transactions, which will increase activity in the formal economy and likely push up tax collections in the long run. Further, demonetisation received great support from the public at large. Considering these factors, this may be an opportune time for the government to elevate the public mood by granting them tax relief.
Kuldip Kumar
Partner and Leader,
Personal Tax, PwC India
