New Delhi, First published Jan 20, 2022, 2:19 p.m. IST
Expectations are high for the 2022 Union budget, which Finance Minister Nirmala Sitharaman will present on February 1. Asianet Newsable reached out to businesses across all sectors to understand their hopes for the Union budget. Continue reading.
Executive Director, Prime Securities and Advisory Limited
There will be a strong push towards startups in the next budget. India is going through a glorious wave of seed funding, mergers and acquisitions and exits over the past couple of years. This year’s budget will only further promote the startup industry, provide a tax regime favoring startups as well as individuals, make the investment climate more conducive for domestic and foreign investors and help make doing business in India easier. .
Expect the Union budget to make (business) creation in India more attractive, including by enabling investment and providing favorable taxation for the smooth running and success of businesses. A push for the world of startups will only stimulate economic activity and create more jobs. After all, startups have been the source of most hiring in recent months, second only to the technology services sector.
Federation of Indian Granite and Stone Industry
For the granite industry, per raw block, there is a GST of 12 percent, and therefore the government is requested to reduce the GST to 5 percent. For polished slabs there is 18% GST and we requested 12% GST. At present, there is no permission to import the granite blocks. we expect the Ministry (Mines and Geology) to authorize the same with a nominal fee.
There are many facilities for the MSME sector; the same should be extended to granite exports as well. For MSMEs, bank loans are readily available and interest rates are lower, while no priority is given to the granite industry for exports. The sector imports around Rs 25,000 to Rs 30,000 crores of granite per year. Yet, the government has still not considered the sector as an industry and has not categorized it as an MSME despite several representations.
We hope that during her speech, the Minister of Finance will announce a reduction in GST rates and grant permission to import granite. This aside, as we pay high royalties to the state government and also pay to the District Mineral Fund. We expect the government to reduce some royalties as well. As the GST refund is pending, the government should put in place an automated refund mechanism.
CEO, Volta Automotive India Pvt Limited
Currently there is an 18% GST on the purchase or sale of electric rickshaws. The same rate is applied for CNG and modernized three-wheelers. Hence, it adds a financial burden to motorists in the end. Hope Finance Minister Nirmala Sitharaman brings some relief by reducing GST from 18% to 5% as this will help thousands of car drivers in India.
He also pointed out that the government has provided subsidies for the purchase of new auto-rickshaws while there are no such benefits for upgraded vehicles. So, the modernized automobile industry hopes that the finance minister announces a subsidy of Rs 25,000 to 30,000. For electric vehicles, whether sales or purchases, the government should grant at least three years tax exemption as this will help many manufacturers. For refurbished cars, banks should also consider it a priority sector and grant motorists loans at 8 to 9% on purchase. Hopefully these things will be covered in the 2022 budget.
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Last updated Jan 24, 2022 8:24 PM IST