Union Budget 2018 is set to be announced on February 1 and while the citizens of India are expecting several benefits from the budget this year, here is what various players of the technology industry look forward to with this budget.
“Realistic Budget is what I expect from this Government when it is going to propose their last budget of their current Term in office. There is more logic than hope to this argument. The Current government has implemented certain bold steps for the economy. If they release a populist budget, it might derail all those steps and reforms." says Limesh Parekh, CEO, Enjay IT Solutions, a firm which provides CRM Solutions to the IT Industry, SME's and Start-ups.
Meanwhile, Syed Tajuddin, CEO, Coolpad India believes that a cut on the existing GST rates is in order, “The new budget should take special measures to efficiently upgrade the digital infrastructure in all parts of the country. Right now we need more high-speed internet networks to penetrate further into the cities, villages and towns. As these areas become smartphone friendly, handset brands can look forward to expand their reach to remote regions and facilitate connectivity. I also suggest that the government should reduce the GST on mobile handsets from 12% to 5%, especially for the smartphones under INR 10,000. With a 12% GST mobile phones are costlier by 4-5% and has also taken away the benefit under duty-differential, being offered to local manufacturers. To put "Make in India" as a driving force for the electronic manufacturing sector, Government needs to act swiftly to provide benefits to the local manufacturers, as lack of part suppliers along with a complex tax regime is already hurting the make in India initiative as a whole."
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Another outlook focusses on the effect of the budget on the budding startups in the country. Mahesh Lingareddy, Founder & Chairman of Smartron feels “This year’s budget could see tax sops and other incentives for investors to invest in startups. Startups need different kinds and levels of capital through their life cycle, from conception to profitability. We want Indian investors to benefit from Unicorns and successful exits to create domino effect within the ecosystem. If Softbank or Tiger Global have massive exits from likes of Flipkart or Ola or Paytm, the money is going back to Japan or US. This will allow us to build an innovation engine pipeline and build 10-15 global brands over the next decade."
Vinu Cheriyan, CFO & Director Operations at Sennheiser Electronics India Pvt Ltd stays optimistic about the upcoming budget, “We expect that the finance ministry is working on a proposal to increase the tax exemption limit from INR 2.5 lakh per annum to INR 3 lakh or more and introduce some changes in the tax slabs to lighten the taxpayers' burden. We also expect a series of populist policies in this year’s budget including a reduction in corporate tax to attract investments and deduction in the GST slabs as well."
He further adds “There is also a need for the government to simplify the GST invoices being issued to the consumers by eliminating the mention of HSN codes on them, removing the need for manual signature and multiple copies. The government should also take necessary steps to ensure a simplified e-way bill system to avoid additional burden on the industry. We hope that the budget gives a lot more in the hands of individual consumers for them to be able to go out there and buy. If consumption in India increases, it re-emphasizes the democratic dividend that India has and this will further support the Make in India movement in the country. This would stimulate consumption and boost retail markets."
As for the audio industry, he comments “We believe that government will take into account, the growth of audio industry in India and slash the GST rates on audio equipment’s."
Swetang Vin, Corporate Vice President and Regional CFO, AMD adds “Supply of goods and services to units registered under STPI should be GST exempted. Entities registered as STPI units have fueled the economy for almost a decade by bringing in convertible foreign exchange into India and have proved themselves as partners the nation building. Though there are schemes supporting the STPI units, claiming GST/Service tax refunds for the unutilized credit is not an easy task. Amendments in the Law exempting levy of GST on services rendered to STPI would enable release of unwarranted pressure created on the working capital."
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