Budget 2013 must make room for higher expenditure on internal security: Pramoud Rao, Zicom

Budget 2013-14 must focus on ways to revive and stimulate the economy, which is going through a tough time at present, said PramoudRao, Managing Director-Promoter, Zicom Electronic Security Systems.

Furthermore, he said that the Budget should augment global investor confidence by creating a more favourable environment.

Considering the instances of security lapses and increasing incidents of horrific crimes, a higher expenditure on internal security and judicial reforms is the need of the hour, added Rao.

Rao said security is one of the fundamental concerns of the common man. Therefore, the government must support this sector and offer tax holiday. The existing taxes are very high and companies like Zicom are not able to percolate down the value to the institutions and public at large.

"Electronic security is one of the fastest growing industries with a growth rate of 25% per annum. If tax holiday is given to this sector in the Budget, the government will encourage more manufacturing units in India, thereby giving a boost to the economy," said Rao.

Moreover, there should be clear codification and transparency of transfer pricing regulation in order to ease the complexity in taxes and procedures. Therefore, the budget is expected to specifically focus on creating a robust framework and incentives to encourage setting up of modern security manufacturing units as 90% of the security products are imported.

Lastly, Pramoud Rao said that an 'entrepreneurship mission' can be adopted by the government, by way of which support and tax exemptions are given to small companies to ease business.