The government may actually only reduce corporate taxes since this will provide tangible benefits and not touch upon the personal taxes at all
If you step back and look at it with an open mind, ‘suspect’ and ‘expect’ are somewhat similar words. Both attempt to peek into the future. Both raise anticipation. Both mock at the lub-dub ongoing in the depths of your heart. At the same time, there is one big difference. Expect is usually on the positive note while suspect is absorbed in shades of grey.
Earlier March and now February of every year is the time when both these words gather priority – amidst the media, the think tanks, the economy theorists and the public at large. Any guesses what is on my mind today? Budget … of course!
And this year the expectations are way higher than they have even been before. Perhaps, a sea wave of change is sought from the current government. Moreover, people believe that Mr Prime Minister is capable of throwing surprises … which may be shockers to few, but generally are in the benefit of the common man.
Finance Minister has a tough job in hand. They all have at this time of the year. He has to counter the hullabaloo around the impact of demonetization on the economy, and at the same time carve out a growth path for the GDP to sprint up to 7 per cent plus. While the IMF and various financial pundits had pegged India to supersede the growth of China for the next two years in the running, the world will be watching what the Centre is about to hurl out.
If I were to list my expectations, I would want some additional focus to infra, real estate and job creation.
Widening the individual tax slab; Lower Tax rates for both, corporate as well as personal income; Deemed income taxation on second unoccupied housing property should be removed; Tax only actual income earned; Increase tax deduction limit for housing loans and provide additional tax breaks for those involved in the construction of affordable housing.
My usual suspects would be……
Hike service tax from 15 per cent to close gap with 18 per cent GST rate. The government may actually only reduce corporate taxes since this will provide tangible benefits and not touch upon the personal taxes at all.
Retrospectively speaking, Prime Minister is always high on expectations and low on suspect list. So, my hopes are intact…
