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Budget Should Be Favourable To Common Taxpayers

Raj Shamani Jan 28, 2021

There are no easy answers on how to tackle the current economic downturn, with limited ammunition available with the government to meet demands of diverse stakeholders.

Nevertheless, “hope” for a better tomorrow is keeping humans alive and resilient. One hopes that this years budget will be a bold and reformist one as it will become an important milestone in India’s journey

HeathCare

First is the thrust on healthcare and this will probably be the main area where the expenditure will be concentrated.

Major issue faced by the Indian healthcare sector is unavailability of adequate facilities. While the frontline warriors are working day and night to fight against the pandemic, proper healthcare in India still remains out of reach for many. This is primarily because healthcare services are exempted under the GST regime leading to GST paid on procurements of input, input services and capital goods seeping into the cost of healthcare services. It is expected from the government to either ‘zero rate’ or propose a lower rate of GST @ 5% for healthcare services with full eligibility of input tax credit.

Taxation

One expectation from the 2021 Budget — it should be favourable to common taxpayers. This year, they were the one most affected, the ones with maximum EMIs, maximum responsibility, and expenses on a recurring basis. But because of the pandemic, they have seen the lowest days. Providing some relief to the common man is the need of the hour. With this year’s Budget, I am expecting some relief in the tax slab for the common taxpayers. Given the fact that this is the first budget post-COVID, the industry is hoping for concrete measures to revive the economy, ways to increase consumer demand, particularly in sectors that were hit hard by the COVID crises. By simplifying things such as taxation, investment, and offering further incentives to Indian startups, the government can help in helping them generate more revenue and employment.

To encourage employers to retain and re-hire employees or avoid layoffs. Tax relief in the form of a conditional weighted deduction for salaries paid, corresponding to the impacted period, would aid disrupted employers.

Transport and tourism

The tourism and hospitality sector has taken a massive hit during these uncertain times. While the sector is now gradually reviving for a majority of players, it is still far from standing on its own two feet. Government should take effective steps with due protocols to be a heal the Industry which is required at this time for this sector.

Budget 2021 could be decisive as a roadmap for consolidation and recovery and for uplifting the overall business.

Road safety must be brought to mainstream with the allocation of funds for awareness, setting up emergency response ecosystems, and improving highway safety and infrastructures. Domestic tourism should be empowered, and housewives should be encouraged and incentivised to become brand ambassadors of local tourism. Riders and the blogger communities should be recognised as they play a large part in our local tourism.