The government has been pro-active in boosting businesses in India while promoting the value of 'Make in India' in enhancing the economy. While the previous two budgets dealt with ease of doing business, industrialists believe that the government should now focus on cost of doing business.
Experts believe that an overall development of the economy is possible only when there is development in agriculture, healthcare sector. PPP investments are also being enouraged.
Last year's budget involved 100% deduction for contribution to Swachch Bharat and Clean Ganga projects, hike in service tax and incentivised use of credit and debit cards.
Here is what the industrialists want from the government:
Daksha Baxi of Khaitan & Co said,"Finance Minister Arun Jaitley should simplify and bring clarity in tax laws, which will undoubtedly improve tax compliance, thereby increasing revenue. Removal or significant reduction in MAT rate will put significant cash flow in the hands of taxpayers to make much needed investments.
Hemant Kanoria, Chairman and Managing Director of Srei Infra Finance, said, "the Budget should focus on streamlining regulations to reduce tax uncertainties and improve the ‘ease of doing business'. The finance minister must make provisions to broaden the tax net, and one way to achieve this is to increase PAN registrations, which will result in substantial reduction in black money transactions".
Yes Bank Managing Director Rana Kapoor said that the government should restore the confidence of the private sector by enhancing the reform process. He further added,"The private sector has subdued animal spirits which need to be revived. We need to get more high-octane energy in the economy, the catalyst for which is good capex spends and an accelerated resolution and reforms process."
Spicejet Managing Director Ajay Singh called for exempting airlines from the MAT ambit till they wipe off all the accumulated losses, apart from giving exemption from withholding tax on aircraft/engine lease rentals.