Bhubaneswar: ICC is expecting the upcoming Union budget to fast track economic recovery. In view of the persisting Covid-19 situation, ICC expects the Union Budget 2022 to increase public spending specially on the capital expenditure front with the objectives of boosting demand and creating jobs, and counteracting by suitable supply-side measures for addressing the inflationary pressures.
ICC statement highlighted that India’s private final consumption expenditure, is projected to rise at 6.9% in 2022 but is still at 2.9% which is far below 2020 level. ICC strongly recommends augmenting personal disposable income especially for the rural population and the urban poor to support consumption as the key focus of the budget.
ICC expects the following specific measures in Union Budget to achieve the economic goals:
1. Many projects are running behind schedule. There is need to extend sunset date for tax benefit for newly incorporated companies to 2025 from 2023.
2. In view of India’s commitment COP at Glasgow, need to offer concessional tax rate to companies investing in green technology, provide tax holiday for electric vehicle, and provide competitive advantage to RE sector.
3. Need to simplify Income Tax Law and reduce the disparity in rate structure for personal taxation in relation to Corporates and continue to address the structural/administration issues.
4. To reduce/rationalize the number of slabs in GST and bring down complications in the law & procedures (including increased formalization/digitization) for ease of administration & collection.
5. Private sector investments have not really taken off over last 3 years. Govt. could consider measures like concessional LTCG rate to investment in Startup, Reduce holding period of REIT/InvIT to 1 year for long term capital gains. Govt. should continue/allow enhanced incentives (including PLI) for the reputed foreign brands to establish manufacturing in India.
6. Crypto currency need a clear regulatory and taxation framework to protect investors and also to gain from the Crypto wave.
7. Infrastructure: Increase in infrastructural investment in both Public and Private domain to boost public demand and employment.
8. Healthcare: To increase healthcare expenditure in the public sector and also promote/incentivize investment in the private sector to prepare for future.
9. Agriculture: To strengthen the farm laws and public distribution system, including warehousing to invigorate the agriculture sector and exports.
10. Revenue Generation should be considered through Privatization / Disinvestment and Reforms in diverse areas like Power sector, Insurance, etc along with Telecom (5G auction)
Pre-budget views from the various sector specific committees, ICC Odisha State Council
Mr Sriram Panda, Convenor, Agri & Food Processing Committee, ICC Odisha State Council:
Agri & Food Processing:
1. Focus must be given to small farmers and agritech startup. This in turn will make the ecosystem large and aspirational for growth and development in the agriculture and Food Processing Sector.
2. Research and market oriented product development centers must be opened in district level in mission mode for taking advantage of One District One Product. Exports must be incentivized for this sector.
3. FPO or mechanism to bring together marginal farmers for marketing and support i:e Amul model must be emulated in various sector even in pulses , cereals and vegetable production.
4. Finance and Insurance for farmer’s also cheaper and easier credit system for MSME in agriculture and food processing sector must be a focus. Instead of Grant focus must be on reduction of loan interest component and providing longer repayment periods.
Ms Rima Dhawan, Core Member, ICC Women Entrepreneurs’ Committee (IWEC), ICC Odisha State Council
1. Promote economic independence and entrepreneurship.
2. Incentives women-led startups.
3. Create a regulatory system for startups
4. Initiatives to increase the number of female entrepreneurs
5. Women startup centric schemes are needed.
6. Women’s safety in the digital world.
7. Tax benefits GST and Income Tax from women entrepreneurs.
8. Extra home loan benefits for women entrepreneurs.
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