What industry Wants ?

 

Budget 2021 

The Union Budget 2021 will be tabled in the Lok Sabha on February 1 and this year it falls on Monday. It will be the third budget for Nirmala Sitharaman as the Finance Minister of India under the government led by Prime Minister Narendra Modi.

However  we will discuss the wish list of some key sectors across India. 

Automobile Sector

1) Incentive Based scrappage – Policy for automobiles; funding for purchase of buses by states

2) Higher 25% Depreciation rate for passenger vehicles and 2 – wheelers

3) Reinstatement of investment allowance for component makers

4) Include EV industry in the priority sector lending category

Energy and Power

1) Abolition of cess on crude oil from pre – NELP and nomination blocks

2) Reduction in royalty on oil and gas production; lower import duty on LNG

3) Relief from import duty on solar cells and modules

4) Rationalisation of levies on generation, distribution components

Consumer Durables

1) Extend Phased manufacturing programme to all categories of durables

2) Incentivise purchase  of durables

3) Fiscal incentives for energy efficient products

4) Provide income benefits to individuals to lift demand

Telecom

1) Cut licence fees from 3% of AGR TO 1%

2) Cut spectrum usage charge by 3%

3) Exempt 4G/5G network gear from customs duty

4) Cap customs duty on handsets at 20%

Hospitality and Tourism

1) Infrastructure and industry status to hotels, restaurants and resorts

2) Minimum Alternate Tax waivers for 3 years to hotel sector

3) Extend investment linked benefits to hotels; IT benefits for travels

4) Recognise tourism sector revenue at par with merchandise exports  

Fast Moving Consumer Goods ( FMCG )

1) Measures to boost consumption demand

2) Reduce personal income tax put more money in the hand of consumers

3) One time direct fund transfer to weaker section

4) Provide loan relief to MSMEs; help to restart businesses

Real Estate

1) Industry status widen definition of affordable housing

2) One time restructuring of loans

3) Increase home loan interest principal payment limit for tax benefits

4) More funds like SWAMIH for last mile funding of stressed projects

Aviation

1) Comprehensive relief package for aviation sector

2) Bring ATF under GST to reduce incidence of tax

3) Financial incentive for airlines including low-cost credit

4) Airports seek increase in liquor allowance from 2 to 4

Health and Pharma

1) Set up a health fund to deal with health exigencies

2) Provide incentives for health Insurance to increase penetration

3) Enhance incentives for Research and Development

4) Cut custom duties on inputs used by industry

Retail

1) Implement National Retail policy allow retailers to register as MSMEs

2) Encourage States to adopt Model Shops and Establishment Act

3) Decriminalise legal Metrology Act to improve ease of doing business

4) Expand PM Mudra Yojana to digitalisation in kiranas and small retailers

Startups

1) Widen ambit of Employee Stock Ownership Plan ( ESOP ) tax benefit to all registered startups

2) Remove condition of interministerial board certificate for angel tax relief

3) Change regulations for greater capital flow into startups

4) Make gains on new investment into startups tax free; Roll back “superrich” surcharge