What the luxe segment wants: Higher income tax exemptions, digital transactions

Sukanya Dutta Roy
Managing Director
Swarovski India

We need radical steps to boost domestic consumption. The reports submitted by the government suggest that the implementation of GST has widened the income tax base. The increased tax recovery has created substantial revenues for the government. Hence, the government must rationalise the income tax structure so that the higher indirect tax collection can benefit people. Reduction in personal income tax rates as well as corporate taxes will be the first step to encourage consumerism.

Dinaz Madhukar

Executive Vice-President
DLF Luxury Retail & Hospitality

Like any other Indian, I have my fingers crossed for a good Budget, one that will continue to lead India to a brighter, more stable future. Keeping the current economic scenario in mind and with the hope of further revision of tax slabs, the purchasing power of individuals would increase, resulting in additional demand and consumerism.

While the after-effect of demonetisation has worn off, the market is still coming to terms with the changes brought in by the Goods and Services Tax. The growth of the economy has been attested by the global leaders, and we hope that the post-Budget sops that the Government has hinted towards extending, only add to the disposable income our shoppers have and help the retail industry (luxury and otherwise) boom.

While there remains an urgent need to strike the right balance between a populist and reformist approach to achieving our economic goals, we do hope that the import duties are reduced, and the market is opened to greater foreign direct investment (FDI) (like 100% in retail) which will help the retail economy grow.

In order to bring back order and ensure smooth inter-functioning of various key sectors, macroeconomic changes and incentives are urgently required. For example, a further higher income tax exemption and deduction would be key to the growth of the luxury segment. I also look forward to furthering the implementation of incentives for cashless, digital transactions.

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