Mumbai: In another development, the BJP-led government is expected to offer tax sops and unveil a series of economic stimulus measures in the Union Budget 2020-21 to boost private investment in the wake of the slowdown.
It has been reported that, finance minister Nirmala Sitharaman likely to concentrate on economic growth, tax incentives and private investment in the Budget in a bid to reverse the slowdown in economic growth and encourage consumer spending. Recent data demonstrate the tepid private investments in the Indian.
A financial daily quoted an unnamed government official saying, “The initiative was somewhat lost after the last Budget. The amendments to the Companies Act criminalising corporate social responsibility lapses were also rolled back.”
It is worth noting that after her maiden Budget on July 5, FM Sitharaman had in September announced a sharp cut in corporate taxes for domestic companies to 22 per cent from 30 per cent previously. The Centre would lose revenues of Rs 1.45 lakh crore as a result of the lower corporate tax.
Meanwhile, it has been said that there are expectations that the next budget would roll out some income tax relief for the salaried class. Plus, the finance ministry may unveil a slew of initiatives, including tax incentives, to tackle issues related to the micro, small and medium enterprises (MSMEs) sector.
On the other hand, the government has kicked-off the exercise to prepare annual Budget for 2020-21, seeking suggestions on changes in direct and indirect taxes from industry and trade associations.