Indian retail sector is currently the tumult of country’s economic growth. Retail in India has seen significant leaps and bounds over the last two decades. From traditional retail to eCommerce and now mCommerce, the industry has transformed upside down.
The NDA government has made its mandate on strengthening the business climate in the country with strengthening policies like FDI in Retail and GST implementation. While the Government has taken steps to provide a push to the regulatory aspects in the sector, the industry will look at being provided with necessary momentum from a taxation standpoint.
What retailer across the country expects from the forthcoming budget is the re-addressing a glut of issues that awaits for a corporal solution. The Finance Minister will have to manage the fiscal deficit and balance tax policy in a way so as to not disrupt foreign investment, the latter, being the most crucial.
Here is the wishlist from some retail startups and companies about what exactly they expect from the upcoming budget:
Manu Indrayan, CEO and Co Founder of 612 League, India’s kids wear brand for pre-teen children
Last year’s budget fell short of expectation, this year, we have high expectations from the budget in particular and the government in general. To ease the movement of goods, the Government must roll out the much delayed GST and bring all taxes including service tax under its ambit. Some of the announcements we are awaiting in the budget speech of 2016 are reduced MAT rates, simplified corporate tax with reduced rates, disinvestment of loss making PSUs including Air India in line with government’s tated objectives of minimum government and maximum governance, increased savings limit to 80 C to encourage savings, increased spending on education and skill development, introduction of bankruptcy law, labour reforms to ease controls and restrictions in hiring and job terminations and FDI allowance to attract investments in retail infrastructure. Apart from all these, this year’s budget must also focus on the infrastructure of road, rail, ports and air, restructuring of the banking sector to re-ignite the lending cycle, increasing the personal income tax slabs and widening the tax ambit by including agriculture income."
Shailesh Mehta, CEO & Co- Founder, JoyByNature.com, online player for all natural and organic products for Food, Beauty and Life care.
India is at the forefront of natural and organic way of living - from information, knowledge and product know-how perspective. So any SOPs for players in this industry which promotes chemical free living - tax exemptions, VAT reliefs etc, export SOPs - would go a long way in promoting the Indian treasure of nature led-wellbeing know-how and products not just domestically, but also globally. In the mid-to-long term, it will also help restore the ecological balance in the country.
Sankalp Chopra, Co- Founder, Seasoul Cosmeceuticals
i. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) loan scheme needs to increase to 1 to 2 cr without collateral
ii. Lower import duty on import of technology /manufacturing zmachines to boost local manufacturing
iii. Ayush under make in India needs to extend to provide benefits for cosmetic manufacturers who engage in harmful chemical free product manufacturing.
iv. Standardisation of taxation across states
v. Incremental benefits in terms of taxation subsidies to start ups or SME firms which engage in ensuring employee benefit at the lower most levels viz. ensuring minimum wage guarantee; ESI benefits; safer working environment; no child labour & employing from non-skill oriented backward societies. This will ensure upliftment of the lower income strata aka daily wage earners in return government subsidy will help keeping the production cost low.