Budget Reaction Quote - Mr. Amit Modi, Director, ABA Corp and Vice President CREDAI Western UP
In addition the Affordable housing projects can be now completed over five years instead of three years earlier to avail the benefits of 80IB and this was very necessary keeping in mind the time taken to get various permissions for real estate projects. Even though we still believe that the need of the hour was to make an online Single window clearance mechanism with bare minimum human interface and precise deadlines for approvals to bring down the time of project delivery and curb any scope for undue gratification in granting permissions. The efforts to enable the home buyer to access cheaper capital via the new Credit-Linked Subsidy Scheme for Middle Income Group with allocation of Rs. 1000 crore in the budget for 2017-18 is highly appreciated, but the biggest let down has been on the personal taxation front, where millions of buyers were expecting the the government should raise tax deduction limit for interest on housing loans up to Rs 5 Lakh per annum from the present limit of 2 Lakh per annum. We also believe that after demonetization the expectation of reduction in income tax was much higher than what has been given but all in all it's a balance budget for real estate sector and also for the entire nation considering that there are going to be very big spending in nations infrastructure, but at the same time misses some major initiatives pending long to enable millions and millions of first time home buyers in the mainstream.
Retailers Association of India (RAI) on Budget 2017-2018
Budget 2017 – 2018: Pro-poor, Pro-consumption and Pro-growth
The Budget 2017 – 2018 focussing on ‘Transform, Energise and Clean’ India has some immediate-term as well as long-term impact on business in general, and retail in particular.
This budget, along with the Finance Minister’s conviction of GST implementation on scheduled date, is music to the ears of retailers.
Overall, the budget laid emphasis on digitisation, infrastructure, and support to farmers, low-cost housing and ease of doing business.
Some key implications of the budget for retail are as under:
1. Pro-consumption: More Money in the hands of people
a. The large thrust on infrastructure development will generate employment, increasing the number of people with purchasing power.
b. The reduction of tax rate from 10% to 5% for 2.5 lakh to 5 lakh bracket will create disposable income of Rs12, 500 per annum in the hands of individuals.
2. Ease of doing business: Will help accelerate modern retail
a. APMC Amendment for direct sourcing of perishables from farmers and contract farmingis in favour of retailers on various counts, the benefits of which will be passed on to the ultimate consumer.
b. Emphasis on adoption of Model Shops and Establishment Act. The Act seeks to allow shops, malls and other retail establishments to operate throughout the year with flexibility to open and close at their convenience. In addition, it provides for women to be employed in night shifts with adequate security.
c. Phasing out of Foreign Investment Promotion Board (FIPB) can accelerate FDI funding in the sector as approvals will be faster.
3. Ease in taxation: Reduced burden on small retailers
a. Small traders having turnover of less than Rs 2 crore can avail presumptive tax benefit under sections 44AD and pay 6% of turnover as against 8% earlier.
b. The effective tax impact on retail companies having turnover of less than Rs 50 crore has been reduced from 30% to 25%. The reduction of 5% is a great relief for small retailers.
c. Extension of Minimum Alternate Tax (MAT) Credit utilisation from 10 years to 15 years will help retail businesses as they have long gestation period.
4. Accelerated Manpower fulfilment: Increased Skilled workforce
a. The increased emphasis on skill development through the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) will help infusion of skilled manpower into modern retail, good news for retailers on an expansion spree into non-metros.
Speaking about the budget, Kumar Rajagopalan, CEO, Retailers Association of India said, “The finance minister has kept something for everyone in the budget, with major emphasis on accountability and transparency. We have already witnessed a big tilt towards modern retail post demonetisation and the measures proposed in the Budget will further accelerate the pace. We await implementation of GST to further the cause of chain store and omni-channel retail in the country.”
Post-budget quote from Ms.Vidushi Daga,Clone Futura.
Clone Futura Education. Below is the Post -budget quote by Ms. Vidushi Daga who is an Indian businesswoman, Founder and Director of Clone Futura Education.
“Although the focus on skill development and implementation of quality education parameters by introducing the practise of measuring annual learning outcome in schools is a very good move by the government, but the main concern is that the entire focus was only on higher education. The base of having a systematic and future oriented education system can only be implemented by building a good platform for teachers to learn. Next is if the primary education system is not moulded, then eventually it is going to affect the higher education sector as well. There should have been focus on how digital education can be provided to the primary school students and teachers by providing some special counselling/awareness about cyber safety, latest trends in technology and education modules etc. All in all the budget does look promising when it comes to rural development, higher education and tax benefits but there could have been a better focus on the overall education sector”, says Ms. Vidushi Daga who is an Indian businesswoman, Founder and Director of Clone Futura Education.
Post Budget Reaction – Mr. Rishi Kapal, Global Strategist and CEO, EduGild:
“The focus of the budget in supporting initiatives to make job ready youth is welcomed. We expect a labor market information system to be created where industry job needs can be forecasted with accuracy. It was expected that the budget would give subsidy and more autonomy to universities adopting cutting edge tech like the rest of the world. However, the announcement is silent on how India will be made a world class education destination with campuses adopting AR/VR/NLP/AI solutions and services. The initiative to open 350 online courses can be of a huge impact if the post program assessment is solid and transparent. Digitization of proctoring with help of government budgets will make the move realistic. However, the budget is silent on sector based support to startups. For the Edtech sector, we anticipated announcement where the government would open international centre’s to give global access to Indian edtech companies. While the centre’s are being budgeted for giving Indian youths access to global jobs, the social - political environment overseas is not in our control. However, creating great Edtech companies from India to the world would have been very much possible with government budget and support. Overall the budget is constructive but initiatives have to go a long way before Indian edtech and education system deems to be globally competitive. The demographic outlay is in our favor, we need to leverage it now”.