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Budget 2017: Government should bring in simplification of tax laws

Though there are certain issues between centre and state government over processes and implementation, I hope government will redress such issues in the budget.

By ET CONTRIBUTORS | Updated:

By Achal Bakeri

With all eyes on GST launch, 2017 will turn out to be a historic year for indirect taxes. Recently Finance Minister Arun Jaitley said that July 1, 2017 would be a “more realistic date” to roll out GST. No doubt, this will change the whole taxation system and will make the task of estimating and filing taxes much easier.

Though there are certain issues between centre and state government over processes and implementation, I hope government will redress such issues in the upcoming union budget.

The government needs to bring in simplification of tax laws. Moreover, the need of the hour is to widen the scope of taxation. We see big corporate houses as prime targets for paying taxes but at the same time we forget that a large number of taxpayers are either evading tax net or not paying appropriate taxes. Contributing to economy is everyone’s responsibility and I think each and every citizen need to be responsible towards paying their taxes.

This year many corporate houses and public in general are very eager to see change in income tax slabs. Many reports suggest that to ease the pain of demonetization, government may revise minimum taxable income to Rs. 4 lakh from current Rs. 2.5 lakh per annum. If union budget come up with any such announcement, it will be cheered by the salaried and self employed class.

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In addition to this, we expect the Government to lower the corporate income tax to 28% in the upcoming budget and reduce it further to 25% in coming years as promised by Finance Minister.

Ease of doing business should be the top priority for the Government

(Achal Bakeri is CMD of Symphony Ltd)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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What India Inc expects from Budget 2017
1/7
On February 1, Finance minister Arun Jaitley is expected to present a tax-payer friendly 2017 Union Budget, given the fact that it comes within months of demonetisation.

With just few days to go for the annual financial plan, the Indian corporate sector has already started gearing up for it.

Here are some of the major expectations of India's business tycoons from budget 2017:
On February 1, Finance minister Arun Jaitley is expected to present a tax-payer friendly 2017 Union Budget, given the fact that it comes within months of demonetisation. With just few days to go for..
Read More
Naina Lal Kidwai, Former President at Federation of Indian Chambers of Commerce and Industry(FICCI), said growth should be a key element of Budget 2017 going forward.

She said: "I don't know how the robustness will stay in terms of overall numbers even while compliance goes up. So, near term clear impact is an issue. However, what we can hope for is that it clearly requires that growth is kick started again."

"Anything that goes into public sector spending which this government did extremely well in its first year, pushed a lot of GDP growth into the system. The second would be anything again to do with jobs because people who have lost jobs in the formal sector are going into NREGA and these pockets must see some benefits. And the third would be anything which helps consumption because that will help production come back," she added.
Naina Lal Kidwai, Former President at Federation of Indian Chambers of Commerce and Industry(FICCI), said growth should be a key element of Budget 2017 going forward. She said: "I don't know how the..
Read More
Adi Godrej, CMD at Godrej Consumer Products Limited, said GST will lead to tremendous boost in FMCG demand. It will, of course, lead to general boost to GDP growth in the country, as well, he said.

He said: "I expect individual tax rates will also be reduced and I think exemption levels will be increased in this budget because the government's fiscal position will be excellent for the next year. Of course, they don't have the exact numbers yet but there will be a tremendous collection from the huge deposits that have come in post demonetisation in to the banks. Many of them would lead to higher rates of taxes and the government collections in my view should be good."
Adi Godrej, CMD at Godrej Consumer Products Limited, said GST will lead to tremendous boost in FMCG demand. It will, of course, lead to general boost to GDP growth in the country, as well, he said. ..
Read More
Kishore Biyani, Group CEO at Future Group, said that he's looking forward more to the GST than the budget, and in the budget, the government incentivising consumption is something which he is looking forward to.

"We are hoping for the GST more than the budget and in the budget, the government incentivising consumption is something which we are looking forward to. The savings rate interest might come down and consumption might be encouraged and that is what we are looking forward to," Biyani said.
Kishore Biyani, Group CEO at Future Group, said that he's looking forward more to the GST than the budget, and in the budget, the government incentivising consumption is something which he is looking..
Read More
Sunil Subramaniam, CEO at Sundaram Mutual, said the rural economy, infrastructure and banks riding piggyback will benefit from the budget thrust of the government.

"... the biggest challenge for the government is employment generation over two - three years. So, mega projects supporting employment generation in a big way will be a focus. The rural sector (will be a focus) partly because the two big states going to the elections -- Punjab and UP...And the third thing is the government's strong urge to make the demonetisation look successful."

"If you look at it from that perspective, they will definitely want to do a wide-ranging set of stuff which partly Modi announced on December 31st but they will carry through that momentum and there will be a lot of positive impact on several sectors," he added.
Sunil Subramaniam, CEO at Sundaram Mutual, said the rural economy, infrastructure and banks riding piggyback will benefit from the budget thrust of the government. "... the biggest challenge for the..
Read More
Harish Krishnan, Senior vice president and Fund Manager Equity at Kotak MF, said the domestic cycle is in a far better shape than the global cycle and therefore he would orient his portfolios more towards companies and sectors which are part of the domestic cycle.

"The government is possibly the only one with significant purse strings to loosen up at this point of time and our sense is that more of the allocation towards both infra and rural sector could well be on the way, given the chances that the government might want to try and appease these sections. That would be the other space that we are looking out for," Krishnan said.
Harish Krishnan, Senior vice president and Fund Manager Equity at Kotak MF, said the domestic cycle is in a far better shape than the global cycle and therefore he would orient his portfolios more to..
Read More
R Sreesankar, head institutional equities at Prabhudas Lilladher, believes this will be a government spending budget, especially because the country's November Index of Industrial Production and manufacturing took a hit.

"And if you don't see the capacity utilisation of the industries moving up, I don't expect a large amount of private investments. So, it will be the government spending which will drive the economic growth going forward and to facilitate that kind of growth, what will be the sops that will be there in the budget that is going to be key," Sreesankar said.
R Sreesankar, head institutional equities at Prabhudas Lilladher, believes this will be a government spending budget, especially because the country's November Index of Industrial Production and manu..
Read More
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Arun Jaitley |Tax |GST |Achal Bakeri |Budget 2017

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