More Inclusive Taxation Would Help Economy Grow Faster
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The Union budget of India undoubtedly met few expectations and resolved few problems and even raised a few eyebrows with its new policies.
Lets decode the same in detail -
The budget bought a positive momentum in the market, the slew of pro-business measures along with more inclusive taxation for individuals and small firms, which would surely help economy grow faster.The budget also took measures to uplift tax benefits for the industry. A permission of 5% tax having a turnover below 50 crores has begun which would be useful for the start-up companies to earn improved revenue margin.
This key step built the strong foundation and also improved the sales of their products released in the market, boosting vendors and skilled business organization once these policies are implemented. Likewise, steps started in order to raise the purchasing power of the consumers by eliminating duty for income upto 3 lakhs and reducing the tax rate .
The foreign investment in advertising has been eliminated in the new budget which would increase the demand for Indian Advertising companies which in turn will boost the Domestic Advertising industry and most importantly will generate more Employment opportunities.
It will ultimately help in augmentation of “Make in India” initiative.
From an SME and startup standpoint, there are some useful advances in terms of tax incentives & benefits. However, SMEs and startups have to reach profitability to avail of them. Only then does the Budget 2017 directly help them. In the meanwhile, SMEs will still have to figure out how to secure their funding and take advantages of the opportunities in an ever more digital market.
The finance minister proposed a significant cut in the tax rate for firms with revenues less than Rs.50 crore. SMEs are instrumental in providing a significant amount of employment and dominate the economic landscape of the country. The hope is that this initiative will make the environment more conducive to startups and small businesses and make Indian companies more competitive vis-a-vis their international counterparts.
Overall, Union Budget is “balanced” with no negative surprises for economy in general. Though on an individual level, I wished some more advantage to SME & make in India could have been given for making them price & Technology competitive at international level.