The upcoming Union Budget 2017, is the most anticipated event marked for the year’s financial calendar.
The Electronic & IT Industry being one of the most vital fragments of the Indian Economy, is anticipating a budget that throws wide-open new avenues for further growth, superior infrastructure, and new channels of major investments to the country.
In respect to Markets, Manufacturing, Investments, Import & Export, Government Policies and other aspects of Electronic and IT sector, here are some of the Industry Expert Recommendations that has been presented in the upcoming Union Budget, to be tabled on February 1st, 2017:
• Bold changes to the corporate taxation structure in the country, including higher tax breaks for the purchase of PCs, Customer Premise Equipment (CPE), Point of Sale (PoS) terminals and other digital solutions.
• For consumers, the government should aim to lower the landed price of IT products through changes such as the introduction of GST and related amendments to the country’s indirect tax regime – this would reduce the price barrier to purchase of IT goods, especially in the SOHO and Education sectors.
• For corporates, two things are recommended, lowering the overall corporate tax rate, which would increase the availability of discretionary funds for the purchase of IT products and increase the depreciation allowance for investments made IT infrastructure, to further increase IT adoption.”
• Proposed moves can directly influence increased adoption of IT by Consumers, Education, and Corporate sectors – contribute to the faster achievement of ‘Make in India’ and ‘Digital India’ goals.
• Protection of small IT traders from e-Commerce companies’ predatory pricing and rationalisation of taxes on Software are also key asks.
• A level playing field for traditional physical distribution and retail chains vis-à-vis foreign, private equity funded e-Commerce businesses should be provided, as small traders are losing money because of the predatory pricing adopted by big competitors such as Flipkart, Amazon etc.
• This issue needs to be addressed on priority as the smaller traders are being rendered insolvent due to deep losses.
Mr. Madhukar Tripathi, Sr. Manager, Sales & Marketing, at Anritsu India Pvt Ltd., the Indian subsidiary of Anritsu Corporation, a global provider of innovative communications test and measurement solutions, gave the following recommendations.
• The government must focus on Quality products manufacturing India. Suitable incentive must be in place for local manufacturers. Let Make in India be truth rather assemble in India.
• There must be a significant difference in duty, taxes in Make in India and imported from India.
• Online payments/ transactions must be service tax-free. This is required to promote honest buyers and provide them incentives.
• Suitable infrastructure must be provided by all state government & central government to manufacturing companies.