REACTIONS ON THE UNION BUDGET 2016
The Union Budget 2016 was largely agrarian in nature and the restaurant and F&B sector was looking forward to some impetus. While we had also hoped for some announcement on implementation of GST, the industry will be impacted to a limited degree by the increase of service tax, through the introduction of 0.5 per cent agri cess. The decision to circulate the Model Shops and Establishments bill to state governments for voluntary adoption is a welcome move. Riyaaz Amlani, President, National Restaurant Association of India
One per cent levy (to be deducted on source) on purchase of high end luxury goods (exceeding Rs2 lakh in price) has not been liked by the luxury sector as many believe it will discourage buyers at home and might encourage them to shop for those products outside India.
-I Rahumathullah, MD, Maui Jim India
I don’t foresee major change in food industry this year as increase of service tax is minimal with the introduction of 0.5 per cent Agri cess. Irrespective of increase, food industry hardly will see any recession as people like to step out. -Priyank Sukhija, owner at Tamasha and lord of the Drinks
The government's focus on developing better infrastructure by investing in national highways and non-functional airports is definitely a step in the right direction for the travel industry - making India more accessible will no doubt help boost India's appeal as an international destination and help Indians see more of the country domestically, although the implementation of Krishi Kalyan cess may lead to Indians spending less on travel and dining out - Nikhil Ganju, Country Manager, TripAdvisor, India.
This year budget won’t have major impact on food industry as service tax increase is marginal. The slight increase in aerated drinks also won’t impact eating out and drinking at our restaurants, as this increase will be increase in our costings, however we won’t let our customers suffer. -Umang Tewari, owner at the Vault Café
Consumers will have to shell out more for the gold and diamond jewellery as the budget has imposed 1 per cent excise duty, which comes as a blow to the jewellery sector. There are about 1 crore artisans working in the industry and most of them are likely to become jobless. Introduction of 1 per cent excise duty will lead to harassment to the trade
Runit Shah, COO & Co Founder, VelvetCase.com
Any increase might affect the slight pricing on customer's pocket. However, we always come up with relief in terms of offering something extra to our customers. like we can offer discount on total bill or may be we can give one drink extra
- Varun Puri, owner at Imly