'Budget should bring tax relief; GST reforms, more infra funds essential for growth'

By Swanubhuti Jain
With the Indian economy showing signs of a prolonged slowdown, the Budget is being keenly anticipated.

The quarter ending September 2019 saw growth drop down to 4.5 per cent, the slowest since March 2013. The combined index of eight-core industries has declined by 1.5 per cent.

The economy needs interventions both at the macro and micro levels. There is an imminent need to boost consumption by putting more disposable income in the hands of people. Understandably, at a time of falling revenue, this is bound to be a tightrope for the government.

The Government should seriously consider income tax relief and changes in the tax slabs. Exempting taxes on income of up to Rs 5 lakh per annum can offer major relief to salaried people, and push them towards increasing consumption.

Similarly, GST reform must also be on the cards and the Government must consider limiting it to two GST slabs. The start-up sector, on the other hand, is looking for measures to boost the startup ecosystem including improving access to funding, boosting digital infrastructure and providing tax relief to incubators.

The move to exempt startups of angel tax must be followed by further measures to improve ease of doing business and remove unfriendly tax burdens. Regulation of the digital economy and privacy laws must also be on the agenda. Allocation of funds in building infrastructure and development should be in alignment with geographies where maximum tax is collected.

(The author is COO of JITO Incubation & Innovation Foundation)