Budget 2017: Expectations of business leaders

All eyes will be on Union Budget 2017 to be presented by the Finance Minister Arun Jaitley before the Parliament tomorrow. India Inc. is betting big on the upcoming budget, which is expected to be high on substance and low on populism.

Here, we present opinions of few business leaders and their expectations from this year's Union Budget:

Anuj Kushwah, MD & Founder of Kaama Impex Pvt. Ltd
 
“Beer drinking habits are changing in the country at a very fast pace. People are looking for good quality beers with varied taste. Imported beers offer solution to this new need. This segment has great potential to grow. Since domestic beers do not offer similar quality and taste, government should look into slashing customs duty on beer. Once imported beer brands see a bigger market in India, their next step will be to brew domestically, thus creating huge employment opportunities. However, liquor is kept out of the GST and it is a big hurdle in smooth distribution. Therefore, the beer industry can look forward to ‘Budget 2017’ for two main elements: reducing customs duty on imported liquor in India and including alcohol beverage in proposed GST. This will give a shot in the arm to the overall business as well as create more avenues for consumers to enjoy their favourite drink.”
 
Anshuman Khanna, Director of Value Prolific
 
“The Budget 2017 comes at a time when the government can take positive and affirmative steps which not only build on the intention of the demonetisation reform, but also appeases the angst it caused amongst the masses’’. The steps taken by the government now will demonstrate the benefit of the demonetisation later and outline the path for a stronger economy. The mid-term Budget should include lower tax rates for individuals to encourage individuals to retain the money and not go back to their old habits of hoarding cash and evading taxes.

For corporate and businesses, the biggest and most logical gift that can be bestowed by the government in this budget is the abolition of MAT. It would streamline corporate taxation and increase transparency and visibility in corporate tax collections. Needless to say that the most relevant measure to build on the demonetisation move would be to implement GST in earnest and at the earliest. With the implementation of GST, there would be greater transparency in indirect tax compliance and collections would be boosted.
 
Farshid Cooper, MD, Spenta Corporation
 
On the verge of the Union Budget, the air is thick with expectations since the announcement will help decide course of the sector for the rest of the year. A higher allocation and tax sops are the popular vote. The market has already started showing positive cues post home loan rate cuts by the banking fraternity. To further the push of the government’s 'Housing for All' initiative an increased allocation to the sector to boost demand will be vital. Due to bank capitalisation post demonetisation, a higher allocation to the cash-crunched sector would be ideal. The government would also do well to facilitate the channelising of investments to the sector for ‘Remonetisation’. 

As investments by the private sector remains subdued, an increase in public sector spending would boost consumer confidence and also reinvigorate the interest of private players to undertake affordable housing projects in the form of Public-Private Partnerships (PPP).