According to data, India has one of the highest tax rates for corporates, largely affecting its score in the World Bank Group’s ‘Ease of Doing Business index. In an attempt to tackle this issue, the government proposed lower corporate tax rules in 2015 and a withdrawal of exemptions for the next four years.
However, the lower tax rates were only applicable to specific sectors and corporates that operate within certain criteria. This was highly limiting and with the upcoming budget, the industry is hoping to see a 5 percent cut in corporate tax rates to drive economic growth rates. Specific segments like real estate, NBFCs, infrastructure companies, aviation, and export houses are facing headwinds due to a variety of factors and this demands stable fiscal and policy measures.
Along with providing ample support, industries also aim for the GST Council to rationalize taxes across critical sectors like housing, finance, and automobiles - largely to spur demand and consumption. For sectors like jewelry, lower import duties will provide significant support, particularly at a time when prices for the metal are increasing across the globe.
“We are hoping for a reduction in the import duty on gold from 10 percent to 4-5 percent. This would help buoy up positive business sentiments, and a cut in the duty structure will ultimately benefit the consumer. A step in this direction will also promote the import of gold through legalized channels resulting in increased revenue for the government,” said TS Kalyanaraman, Chairman, of Kalyan Jewellers.
“Jewelry purchase through EMIs is another option that we would like the government to look into,” he remarked.