Union Budget 2014-Industry Waits With Fingers Crossed

The countdown for the releasing of the  Union budget 2014 has started regarding which the IT industry holds high hopes with numerous expectations. The industry head honchos have released their wishlist from the new government just before the budget goes on table-:

“The current government has put a lot of emphasis on the infrastructure development. There could be two types of infrastructure- the physical and the virtual. While we all understand what the former would be, the latter would include things such as internet, better telecom networks, more e-platforms where people can share their thoughts, opinions, and views. We hope the government focuses on development of such e-infrastructure in the upcoming budget that is connecting people and making them technologically advanced,” says Subroto Das, Director, India & South Asia, WD.

While Western Digital(WD) is expecting for a better digital infrastructure from the ruling body, software giant Microsoft seeks for a relieving tax structure for corporates in the country

”I hope the Government will do more to promote a tax regime that is stable and remove retrospective tax implications.  I hope there is policy direction to reduce tax disputes by implementing advance pricing agreements, accelerating mutual agreement procedures and implementing the cost plus methodology of tax on captive development centres.  And I am looking forward to some timelines to implement GST and abolish VAT,” says Bhaskar Pramanik, Chairman, Microsoft India.

Wishing in a similiar tone Rajat Jain, MD, Xerox India expects the budget to lower the import duties and taxes.

”Correct policies will help the investment rate to grow from 30% to 36% of GDP through faster approvals and implementation of industrial, infrastructure projects and FDI. If this sustains over a period of time we can expect the GDP to shoot up from the current 4.7% to over 6-7%.   We would look at reduction in import duties and taxes. Goods and Services Tax (GST) is going to be a landmark reform in the field of indirect taxation and would be beneficial for the economy. Demand for the end-product can happen only when there are lower excise duties. Today in consumer durables, VAT (value-added tax) is at 12.5 per cent and excise duty at 12 per cent,” says Rajat Jain.

”With measures such as the amendment of Foreign Trade Policies and focus on sectors like insurance, banking and power as well the reduction of MAT rates to 10% demonstrates the intent toward the a positive change of the Indian economy,” adds Rajat.

Sunil Lalvani, MD, Blackberry India adds to the wishlist by expecting a  stable regulatory regime that addresses friendly taxation regime; rational fees and clarity around spectrum charges and trading as well as  reviewing and laying a strong foundation for mergers and acquisitions.

”The governments’ decision on extending the excise and duty structure announced in February this year is a welcome step.  Secondly a stable regulatory regime that addresses friendly taxation regime; rational fees and clarity around spectrum charges and trading; reviewing and laying a strong foundation for mergers and acquisitions will be vital for the growth of this sector. Maintaining affordability with respect to hardware and services both will be desirable to keep the consumer sentiment buoyant. Accessibility and affordability will continue to be pivotal for this segment to drive adoption and mobile penetration to help bridge the connectivity barrier and positively impact the socio economic fabric of the country,” says Lalvani.