Budget 2019-20: A vision statement that sidesteps the tax payers

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Newsroom24x7 network

SEVERAL TAX PROPOSALS AIM TO PROMOTE INVESTMENTS IN START-UPS AND
SUNRISE INDUSTRIES IN THE COUNTRY

LOWER 25% CORPORATE TAX RATE IS TO BE APPLICABLE TO THOSE WITH
ANNUAL TURNOVER UPTO RS.400 CRORE INSTEAD OF THE CURRENT LIMIT OF
RS.250 CRORE

INCREASE IN SURCHARGE BY 3% FOR THOSE WITH TAXABLE INCOME BETWEEN

5 CRORE RUPEES AND BY 5% TO THOSE WITH INCOME OF OVER RUPEES 5 CRORE

DIGITAL ECONOMY TO BE PROMOTED. A TDS OF 2% ON CASH WITHDRAWAL
EXCEEDING RS.1 CRORE IN A YEAR FROM A BANK ACCOUNT IS PROPOSED

BOTH DIRECT AND INDIRECT TAX INCENTIVES FOR PROMOTION OF ELECTRIC
VEHICLES IN A BIG WAY ANNOUNCED

SEVERAL CUSTOMS DUTY PROPOSALS ANNOUNCED FOR PROMOTING MAKE IN
INDIA, REDUCING IMPORT DEPENDENCE, PROTECTION TO MSME SECTOR AND
PROMOTING CLEAN ENERGY

SPECIAL ADDITIONAL EXCISE DUTY AND ROAD & INFRASTRUCTURE CESS OF ONE
RUPEE EACH ON PETROL AND DIESEL PROPOSED

CUSTOMS DUTY ON GOLD AND OTHER PRECIOUS METALS INCREASED FROM 10%
TO 12.5%

New Delhi:  The Union Budget 2019-20 presented before Parliament today by Union Minister for Finance and Corporate Affairs Nirmala Sitharaman is more of a vision document that hikes petrol and diesel taxes and does not offer any relief to Income Tax payees and pensioners. Of course, it lays special focus on boosting Infra-spending.

It’s a budget with a typical mindset lacking a bold vision. A question that spontaneously comes to mind: Why will I buy an electric vehicle if there is no infrastructure? Also there is nothing to spur consumption and generate employment. Just spending on infrastructure will not create jobs.
Talking of IITs and IIS Bangalore and attracting foreign students on one side and setting up the Education panel is one thing but raising the quality of eduction, eliminating corruption in the sphere of medical and technical education and making education universally accessible across board is something that the budget fails to underscore in right measure.
There is nothing spectacular at all except some simplification of rules, reduction in corporate Income Tax up to a threshold, exempting e-vehicles and removing customs duty on Defence imports levy, which  should not have been imposed in the first place because Ministry of Defence had to bear it and this inflated the Defence budget.
Interrstingly, the Budget proposes to reduce ISRO’s budget progressively, except of course, it sanctions Gaganyan.
– Lalit Shastri, Editor-in-Chief Newsroom24x7
It is also to be noted that non-banking finance companies (NBFCs) and housing finance companies (HFCs) are proposed to be brought under the supervision of Reserve Bank of India and tax deduction for low cost housing has gone up. On agri-side, the Budget is more or less silent, except that it praises the farmers for self-sufficiency in terms of pulses and talks of the need to increase oilseed production. On the whole, the Budget can hardly be described as groundbreaking.

10-point Vision for the decade

  • Building Team India with Jan Bhagidari: Minimum Government Maximum Governance.
  • Achieving green Mother Earth and Blue Skies through a pollution-free India.
  • Making Digital India reach every sector of the economy.
  • Launching Gaganyan, Chandrayan, other Space and Satellite programmes.
  • Building physical and social infrastructure.
  • Water, water management, clean rivers.
  • Blue Economy.
  • Self-sufficiency and export of food-grains, pulses, oilseeds, fruits and vegetables.
  • Achieving a healthy society via Ayushman Bharat, well-nourished women & children,
    safety of citizens.
  • Emphasis on MSMEs, Start-ups, defence manufacturing, automobiles, electronics, fabs
    and batteries, and medical devices under Make in India.

Post Budget Conference

Click here for Budget Speech -Finance Minister Nirmala Sitharaman

Click here for Budget – Key highlights

Click here for Budget Summary Part A

Click here for Budget summary part B

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