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Budget Wishlist From India Inc

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08 November, 2014

by BW Online Bureau

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Support NBFCs Financing Infra Assets

Infrastructure creation should be the principal focus of this year’s budget because of its huge multiplier impact in terms of creation of new jobs, enhancing productive capacity and promoting inclusive growth. The budget must announce steps to encourage NBFCs, especially those which are into financing infrastructure assets and projects (NBFC-AFCs and NBFC-IFCs, respectively) as these are the principal conduit of credit delivery to the multitude of small and medium enterprises (SMEs) which are providing crucial services in the infrastructure sector but remain outside the purview of banks. Such NBFCs should be provided a level playing field vis-à-vis banks in terms of tax — treatment and tax breaks, access to funds and asset recovery. Also the budget must attempt to address the bottlenecks in the power and road sectors. Keeping in mind the fiscal position of the Government and its limitations to undertake investments on its own, every possible attempt must be made to encourage private investment in infrastructure. Given the backdrop, this budget assumes immense importance."

- Hemant Kanoria, CMD Srei Infrastructure Finance

Clear Guidelines For DTC & GST

With regard to the semiconductor industry, the latest report by India Semiconductor Association and Frost & Sullivan forecasts consumption of electronics in the country to rise from $6.03 billion in 2011 to $9.7 billion by 2015. However, domestic manufacturing is predicted to show a downward trend by as much as 6.7%, with the gap being offset by electronics imports resulting in capital outflow. To achieve the exponential growth forecasted, the need of the hour is tangible and specific initiatives to implement the terms outlined in the National Policy on Electronics. In addition, tax exemptions, sops for manufacturing, and R&D grants to arrest the outflow of capital will encourage electronic system design and manufacturing (ESDM) in India.

We also look forward to clearer guidelines and implementation around the Direct Tax Code (DTC) and the Goods and Services Tax (GST).

-Jaswinder Ahuja, Corporate VP and MD, Cadence Design Systems

Rationalise Indirect Taxes For Hotel Industry

Clarity and consistency in government policies and their executions are more essential than the annual budget. In terms of expectations from the budget, we would welcome tax incentives towards both urban and rural infrastructure including roads, power, waste management systems, sanitation and water for private and PPP models, and last mile transportation systems, hospitals and health care, hotels, low and middle income housing, and non applicability of MAT on all such infrastructures. The slabs for all tax rates should be increased in order to ease the impact of freeing the cooking gas prices, steep rise in petrol and diesel prices and overall cost of living. Clear timelines for the introduction of GST across India should be announced. The hotel industry is desperately looking forward to the rationalising of indirect taxes like luxury tax, service tax, VAT, excise fees on sale of liquor to promote India as a favoured tourist destination."

-Debashis Ghosal, MD & CEO, Daiwik Hotels

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