Saturday, July 4th, 2020

Union budget should converge all corporate taxes to 15% with no extensions and incentives

INVC NEWS       

New Delhi,

The Union Budget of India for 2020–2021 will be presented by Smt. Nirmala Sitharaman, Finance Minister Govt of India on February 1 and will be the second budget of Narendra Modi led NDA government's second term. Expressing the views on pre-budget expectation Mrs. Alka Kapur, renowned educationist and Principal Modern Public-School Shalimar Bagh said, “Fiscal deficit is likely to exceed its target of 3.3% of GDP due to shortfall in revenue collection. It is not the time for belt tightening or fiscal consolidation in view of the economic slowdown which will worsen if govt decides to reduce spending. Govt should look at raising money aggressively from PSU divestment, asset sale and resolution of pending tax litigation.
 
The FM made a bold move in sept 2019 to reduce the corporate tax. The Union budget should converge all corporate taxes to 15% with no extensions and incentives by April 2023. This will boost investor confidence and encourage investments. Financial sector reforms should be a priority which may include reduction in govt holding equity in banks as well as measures to support NBFCs. Job creations must be uppermost in the budget and a revival in construction sector would not only create demand across multiple industrial sectors but would also generate income for rural workers.

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