The Union Budget to be presented on February 1, 2018 is uniquely significant,as it is the last budget presentation of the BJP Government before lok Sabha elections in 2019 and it is the first budget to be presented after the introduction of tough financial decisions namely demonetization and GST (Goods & Service Tax). Naturally so, expectation is rife in the common man and the industry that while propelling India on a high growth trajectory, the 2018 Union Budget will provide relief after a phase of confusion and inconvenience. Here are highlights of what experts and professionals in Uttarakhand hope for in the Budget 2018, as surveyed by The Pioneer.
1.Rationalization of GST rates, penalties and procedures
“The top two expectations are rationalization of GST rates, penalties and procedures and relief to individuals and corporates in tax rates to reduce tax burden. For example, there should be lower and a single rate for multimodal transport to improve and lower logistics cost for manufacturers. GST rates should be reduced on items like handicrafts, hand-woven sarees, wooden furniture, and real estate industry from 12 percent to 5 percent, on insurance products from 18 percent to 12 percent.We also expect the government to offer penalty holiday on filing of I.T returns in the wake of the confusion caused by the launch of GST. Besides, existing exemption limits are highly redundant, and need revision as per prevailing inflation rates. For example, enhancing limits for transport allowance, including more cities apart from metros for 50 percent deduction calculations of HRA.”
Verender Kalra, co-chairman, Uttarakhand Chapter- PHD Chamber of Commerce & Industry
2.Strategic boost to the Infrastructure, Agriculture and MSME sectors, maintainence of ‘special category state’ status of Uttarakhand
With a positive and forward looking economic survey there is positive shift in the industry sentiments and we expect some of the key announcements in the Budget 2018-19 to be a strategic boost to the Infrastructure, Agriculture and MSME sectors, increased spending and faster implementation of the infra projects, lower corporate tax rates, reinforcement of the focus on building the National Agriculture Market Portal(eNAM) for effective market integration in the Agri sector and simplification of the GST system. From Uttarakhand state development perspective, we hope for maintainence of the special category state status; Post GST where state revenue is hit substantially due to shift to the consumption based revenue for the exchequer, sector specific Special packages for the Tourism and Agri sector and provision for the promotion of micro and small sector in the hill regions.”
Anil Taneja, Regional Director, PHD Chamber of Commerce & Industry, Uttarakhand Chapter
3.Increase in tax slabs, limit under Section 80C of the Income Tax Act
“Increase in tax slabs for individuals-the minimum exemption limit should be increased from the current level of Rs .2.5 lakh to Rs .5 lakh per annum to give more purchasing power to the common man and to small businessmen. Secondly, deduction limit under section80C of the Income Tax Actshould be increased to Rs 2 lakh per year from Rs 1.5 lakh per year, to encourage savings.”
Advocate Mukesh Saxena, senior income tax lawyer
4.Focus on Rural Economy
“Budget 2018 should focus on rural economy and on eradicating rural-urban socio-economic disparity. The ultimate primary productivity of India is in the villages, and the Government has to become very serious about building solid infrastructure, social security and local income opportunities in rural India. 40percent farmers in India have quit farming; rural-urban migration is alarming.”
Anil Joshi, founder- HESCO
5. Greater outlay on India’s healthcare system
“India’s public expenditure on health at about 1.2 percent of the GDP is amongst the lowest in the world. Public health facilities suffer from disturbingly poor infrastructure and human resource inadequacies. There is a need for a significant increase in budgetary allocation on healthcare. 63 percent of total health spending in India is out of pocket expenditure (OoPE) and there is an urgent need to reduce this through expansion of health insurance. A large section of people lack money to get quality private healthcare and even if they have, their entire lifetime’s savings get spent on the expenses.”
Dr. Puneet Tyagi, Principal consultant, Pulmonology, Max Hospital
6.lowering of growing cost of living
“As a common man, my top Budget 2018 issue is the steep rise in cost of living due to inflation. For example, even though gas and crude oil prices are low across the world, in India gas and petrol prices have been increasing having a huge direct and indirect- cascading impact. Also, standard deduction available to salaried individuals on their taxable income should be reintroduced.”
Taran J Singh, proprietor, Classic Watch Center
7.lower GST rates, support to para-athletes
“Budget 2018 should have provisions tocheck the price increase of daily needs items, including reduction of GST rates. As a sports coach, I feel there is a strong need for having exclusive academies dedicated to
para-athletes, like in other countries.”
Naresh Singh Nayal, Physical Education Instructor, NIVH & International Goal Guide- Blind Football