President’s Message
ASSESSING THE BUDGET
Every year, Budget Day leaves people a nervous wreck. This year, specifically in light of the Covid situation, people were on the edge trying to anticipate which way the cookie would crumble and how would it impact their businesses, their personal lives and the economy in general. Rumours were adrift that taxes were likely to be increased by means of ‘Covid Cess’ or ‘super rich tax’. There were murmurs that Estate Duty was likely to be introduced, an idea that the government has been toying with for a while.
The FM though delivered a blinder. No change in taxation rates being the highlight, although a Covid Cess has been imposed on fuel and some other goods. The move was inevitable in view of the fiscal situation. Increased budgetary allocation to infrastructure and reduction on import duty of certain commodities was a welcome surprise. Allocations to healthcare was increased in the backdrop of the pandemic. Spending on agriculture is proposed to be increased most likely with an intention to push through the farm reforms. A major thrust on disinvestment of PSU’s is also envisaged to raise capital and ease the fiscal situation.
There are some minor tweaks to personal taxation and some relief in filing for senior citizens. A major highlight, welcomed by all, was a proposal that the tax department can only open earlier assessments up to 3 years. There are certain adjustments in PF which is likely to impact a small fraction of the population. Skipping an impetus to the travel and tourism industry was heartfelt too.
However, overall the budget has been well accepted by the industry and the surge in markets portrays a big thumbs-up to this year’s budget.
Framroze Mehta
President