By Irfan Razack
At the outset, it is a positive Budget the FM has gone all out in terms of capex, with respect to healthcare, agriculture, infrastructure, railways, roadways and MSMEs. Financial reforms are praiseworthy, for there hasn’t been any tinkering of current tax slabs and therefore guaranteeing the stability of sorts in the tax structure from the prior economic year. Much like the old adage, if it ain’t broke, do not repair it.
Taxation reforms are welcome, such as the time limit for reopening circumstances decreased to 3 years from six. Serious tax offences of concealment of revenue of more than Rs 50 lakh can be reopened immediately after 10 years. Making revenue tax appellate tribunals faceless and setting up of national revenue tax appellate tribunal centre is welcome. These reforms foster a superior, healthier connection amongst the ombudsman and assesses. Tax assessment is also due to be reformed with what’s proposed in the Budget. This, in turn, will help in decreasing corruption, scaremongering and extortion, while shoring up government coffers.
Disinvestments in PSUs are a welcome adjust, be it the Air India or privatisation of airports and providing the business a fillip. Governments ought to govern and not run a organization, and this is in maintaining with the government’s guarantee of ‘minimum government, maximum governance’.
With present industry circumstances and amidst the worldwide pandemic, it is noteworthy that there hasn’t been any despondency or scale back on expenditure towards developmental activities. This will lead to more investments, more jobs, and more taxes. Thankfully, there is no proposal to improve taxes, each indirect and direct, even though a enormous outlay of expenditure is proposed.
The government’s concentrate on very affordable housing and rental housing is laudable. The tax exemption for the same—be it on the interest payable on the housing loan for very affordable housing extended by one more year and the tax vacation for organizations generating very affordable housing—is a clear indication of the government’s priorities on housing for all by 2022.
With infrastructure becoming propped up, we can count on superior mobility of the masses, what with superior public transport and transit acquiring a mention in this year’s Budget and therefore decreasing the tension on current infrastructure. This will help the improvement of spaces that are away from CBD (central organization districts), and therefore guarantee cities are not created in particular distinct pockets like city centres alone.
A superior neighborhood living as a outcome of such reforms is plausible, and will definitely support the provide side for housing and make more liveable and hygienic cities and urban regions. In conclusion, the Budget could not have been any superior, provided the situations we are in.
(Writer is Chairman & Managing Director of Prestige Group)