All eyes are on Finance Minister Arun Jaitley as Union Budget 2016-17 day approaches with expectations growing higher by the day.
With the Union Budget 2016 scheduled for February 29, 2016, his third presentation after taking over the helm of the Finance Ministry in 2014, expectations from Arun Jaitley are a lot higher. And while the two previous Budgets had its own ups and downs, there is no denying that the upcoming Budget 2016 will have its own share of highs and lows too.
Tax related issues have been one of the main concerns of the common man and the industry. As the countdown for the Budget has already started with Arun Jaitley preparing for the Budget, let's take a look at the expectations of the industry – India Inc.
- Whirpool:
While Whirlpool's volumes grew 8 percent and revenue by 13 percent in the third quarter thanks to the Diwali sales, Shantanu Dasgupta, Vice President-Corporate Affairs and Strategy-Asia South, feels that the Budget 2016 should help raise the order curve and serves as a trigger for the patchy demand, particularly in the smaller towns against a soft rural demand.
- Assocham:
In a move to encourage more women to join the workforce, Assocham has suggested that the Finance Minister should announce a women-friendly Budget.
"While we are confident about a positive multiplier effect of leaving more money in the hands of tax payers, a lot of women-specific proposals should be brought in the Budget so as to empower them economically," Assocham President Sunil Kanoria said in a statement.
- Consumer Electronics and Appliances Manufacturers Association (CEAMA):
The CEAMA has asked for exemption from basic customs duty for the major parts required for manufacturing air conditioners, refrigerators and washing machines.
"There is a need to address the inverted duty structure. Budget 2015 extended Special Additional Duty exemption on import of certain products for use in manufacture of IT hardware. However, appliance and consumer electronics makers still face this issue as the value addition in this sector, for several products, is quite low and results in an inverted duty structure," CEAMA President Manish Sharma said.
- Narayana Murthy, Co-founder – Infosys:
In an interview to a leading newspaper, the co-founder of Infosys laid stress on three major points that the government needs to address in the Budget 2016.
Firstly, he pointed out the need to reduce the friction to businesses. Secondly, the need to enhance allocation to education. And finally, the need for a better public healthcare.
“There is a huge need for investment in public health services. There is a huge need for starting more institutes of public health on the lines of IITs and IIMs. I hope the government will allocate funds to start such institutes in different parts of the country,” he said.
Association of Mutual Funds in India (AMFI):
The association, in its pre-budget proposals, has urged the government to consider additional tax benefits for the investors.
The industry body has sought more tax incentives on ELSS, pension products and infrastructure debt mutual funds.
"We have asked for an equal treatment of pension products of mutual funds and NPS. At the moment, under section 80CCD of the Income Tax Act, NPS is given a priority. We have also sought separate tax exemption for ELSS, which is currently within the 80C limit of Rs 1.5 lakh," AMFI Chief Executive C V R Rajendran said.
"There is also need for more infrastructure financing. So we also proposed investment of capital gains in infrastructure mutual funds. The 54EC bonds (used to save capital gains) should be exclusively invested in infrastructure mutual funds," he said this on the sidelines of an Indian Chamber of Commerce summit here.
