The Union Budget placed in the Parliament on Friday was exactly on expected lines. It has given comprehensive compilation of the work done by hte government in the last four years in different sectors and outlined the Vision/Intention going forward. There are announcements of reliefs to Farmers, Fisheries, Health, Housing, Education & Energy in addition to the biggest announcement of an increase in the limit of exemption in Personal Tax.
All these along with Large outlays announced in various sectors will require increase in generation of revenue from sources expected to be found in the finer details of the budget.
The corporate India was expecting a reduction in Corporate Tax Rate that is, Composite Tax Rate of 18 per cent to 20 per cent as in other countries so that the retained profit can be ploughed back for further investments and also to expand and strengthen their existing operations and create new employment opportunities.
Industry and particularly Export Sector has been requesting for withdrawal/reduction of MAT on SEZ which has made the sector unviable and un-attractive. The readily available Investment and Infrastructure of more than Rs 2 lakh crores in SEZ can be ideally utilised immediately by withdrawing/reducing MAT on SEZ.
As known, the existing trade tension between the US and China offers avenues for enhanced bilateral trade and increase in exports to the US which will give quantum jump to “Make in India” mission with multiplier all round effect. But we all know budget is not a one day exercise but a continuous journey.
The writer is Managing Director, Patton Group