January 30, 2019
PHD Chamber expect a dynamic, inclusive and pragmatic Budget 2019-20
PHD Chamber is looking forward to a dynamic, inclusive and pragmatic budget on 1st February 2019, said Mr Rajeev Talwar, President, PHD Chamber of Commerce and Industry in a press statement issued here today.
The last five budgets of the present Government have focused on each and every segment of the economy and the intent of the Government has been to do welfare for every citizen of India, said Mr Rajeev Talwar.
Consistent indirect tax revenue growth, along with reduction in GST rates by the government indicate that the tax base is widening and economic activity is rapidly expanding in India, said Mr Talwar.
At this juncture, the economy needs further bold measures to boost the investment environment and to trigger demand growth to the next level, added Mr Talwar.
Time has come to rationalise the direct taxes starting from reduction in Corporate Tax to a level of 25% for all corporate tax payers, without any turnover criteria. This will provide a boost to economic growth and would result in widening of the Direct Tax net, enhance collections and promote compliance further, said Mr Rajeev Talwar.
Income up to Rs. 3.5 lakhs should be considered for tax exemption, instead of the present Rs. 2.5 lakhs. The maximum personal income tax rate should be towards 25% to increase the personal disposable income which will boost demand in the economy. The Maximum marginal slab should also be raised to Rs. 15 Lacs instead of Rs. 10 Lacs, said Mr Talwar.
Continuous reforms in housing and construction sector would definitely create employment opportunities for millions of unskilled, semi skilled and skilled workforce. It should be noted that urbanisation has potential to shift disguised unemployment in agriculture sector to construction activities, said Mr Talwar.
The increase in public investments in agricultural infrastructure would attract private investments in cold storage, warehousing and supply chain of agriculture produce in order to reduce food wastages and get them to urban citizens at moderate rates. It shall also raise the returns to agriculturists, said Mr. Talwar.
Current level of food wastages of more than 25% should come down to below 10%, he said.
Credit availability to small and marginal farmers would enable them to adopt farm techniques, diversification in the crop pattern and increase in farm productivity, said Mr Rajeev Talwar.
To facilitate further infrastructural development, strengthening of integrated public transport projects such as roadways, railways and waterways would reduce the logistics and time costs to businesses and enhance employment creation. Privatisation of railway and road transport on the lines on aviation industry is the answer for the future, said Mr Rajeev Talwar.
Tourism Sector is the largest investment market in India, which has the larger number of stakeholders even than the stock exchanges in India. It is time to give this a further boost in private sector investment by not considering it a luxury, he said.
Focus on twin merit goods of education with skill development and basic health with safety should continue with a longer term vision, said Mr Talwar.
Continuous reforms in agriculture sector to improve farm productivity and income levels, increased disposable income of the middle class vis-a-vis rationalisation of the direct taxes would give a further boost to the overall economic growth of the country, said Mr. Rajeev Talwar.
Koteshwar Prasad Dobhal