Budget 2022 Wishlist: Favourable taxation for startups, bank loans for drivers, E-auto GST rate cut

Expectations are high from Union Budget 2022, which Finance Minister Nirmala Sitharaman would present on February 1.

Budget 2022 Wishlist: Favourable taxation to startups, bank loans for drivers, E-auto GST rate cut

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New Delhi, First Published Jan 20, 2022, 2:19 PM IST | Last Updated Jan 24, 2022, 8:24 PM IST

Expectations are high from Union Budget 2022, which Finance Minister Nirmala Sitharaman would present on February 1. Asianet Newsable reached out to firms cutting across sectors to understand their hopes from the Union Budget. Read on.

Rahul Tadimalla,
Executive Director, Prime Securities and Advisory Limited

There will be a strong impetus towards startups in the upcoming budget. India is going through a glorious wave of startup funding, mergers and acquisitions and exits in the last two years. This year's budget will only promote the startup industry harder, provide for a taxation regime favouring startups as well as individuals, make the investment climate more favourable for domestic as well as overseas investors and contribute to ease of doing business in India.

Expect the Union Budget to make starting up (business) in India more attractive, including enabling investments and providing for favourable taxation for smooth business operations and success. An impetus for the startup world will only help boost economic activity and create more jobs. After all, startups have been doing most of the hiring during the last few months, second only to the tech services industry

Guru Shastrimath
Federation of Indian Granite and Stone Industry

For the granite industry, per rough block, there is a 12 per cent GST, and hence the government is requested to reduce the GST to 5 per cent. For polished slabs, there is 18 per cent GST and we have requested 12 per cent GST. At present, there is no permission for importing the granite blocks. we expect the ministry (Mines and Geology) to allow the same with nominal duty.

There are a lot of facilities for the MSME sector; the same has to be extended to granite exports as well. For MSMEs, bank loans are easily available and the interest rates are less, whereas there is no priority given to the granite industry for exports. The sector is importing about Rs 25,000 crore to Rs 30,000 crores worth of granite annually. Yet the government has still not considered the sector as an industry and put it under the MSME category despite several representations.

We are hoping that during her speech, the Finance Minister will announce a cut in GST rates and grant permission to import granite. This apart, as we are paying high royalty to the state government and also paying to the District Mineral Fund. We expect the government to slash some royalty too. As the refund of GST is pending, the government should introduce an automated refund mechanism.

Madhan BM
CEO, Volta Automotive India Pvt Limited

At present, there is an 18 per cent GST on either purchase or sale of electric auto-rickshaws. The same rate is applied for CNG and retrofitted three-wheelers. Hence, it adds a financial burden on auto drivers at the end of the day. Hope Finance Minister Nirmala Sitharaman gives some relief by cutting the GST from 18 per cent to 5 per cent as it will help lakhs of auto drivers in India.

He also highlighted that the government has made provision for subsidy on the purchase of new auto-rickshaws whereas there is no such benefit for retrofitted vehicles. Hence, the retrofitted auto industry hopes that the finance minister announces a Rs 25,000 to 30,000 subsidy. For electric vehicles, be it sales or purchases, the government should give at least a three-year exemption from taxes as it will help so many manufacturers. For retrofitted autos, banks should also consider it as a priority sector and give auto drivers loans at 8 to 9 per cent on purchase. Hope these things are covered in the budget 2022.

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