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'Provide tax rebate on consumers' durables, real assets'

Nov 24, 2022

Synopsis
PHD Chamber of Commerce and Industry, on Thursday asked the Union government to provide income tax rebate benefits on long-term consumer durables and real assets in Budget 2023

Industry body, PHD Chamber of Commerce and Industry, on Thursday asked the Union government to provide income tax rebate benefits on long-term consumer durables and real assets in Budget 2023. This move might encourage consumers to spend more on long-term consumer durables or real assets such as a shop, or a second house, Saket Dalmia, President, PHD Chamber of Commerce and Industry said in a virtual consultation with finance minister Nirmala Sitharaman, according to a press release.

There must be a focus on decriminalisation and reduction in costs of doing business, he further added. "We suggest decriminalisation of offenses in GST Law by increasing threshold from Rs 5 crore to Rs 20 crore. These steps would go a long way in encouraging businessmen to expand their companies without fear of prosecution, said Saket Dalmia.

Additionally, he suggested that the Budget 2023 must focus on substantial reductions in the costs of doing business, especially at the Ministry of Micro, Small & Medium Enterprises (MSME) level. "This would include a reduction in the cost of capital, power, logistics, and of land and labour. Furthermore, costs of doing business should not be more than those in the top three manufacturing countries namely China, the United States and Japan," he added.

"There is a need for calibrated and substantial expenditure by the government to bolster demand and Ease of Doing Business through Incentives on innovation and adoption of technology, especially for women start-ups and for R&D activity," he mentioned in the release.

For tourism industry
There must be a focus on developing the tourism industry for large-scale employment, especially in the backdrop of India’s G20 Presidency, he said.

"We need to focus on making tourism more inclusive and varied through concept-driven tourism which involves utilising India’s cultural and natural heritage – such as spiritual tourism – for example, creating a pilgrimage circuit of the 12 jyotirlingas or island tourism – developing the more than 200 tropical islands that are a part of our country, suggested Dalmia.

He mentioned that most international tourist destinations do not attract GST and VAT. "We suggest the removal of 18 per cent GST from tourism facilities and infrastructure," Dalmia added.

On green energy
The industry body recommended making a special committee to discuss innovative, targeted ways of financing and adopting green energy to offset the long incubation period required in this sector. "The taxes on biofuels should be brought to nil. This is an important step for the rapid increase in the production of biofuels and is also needed for energy security," according to the release.

"Import duty on electrolyzers should be brought to nil. This single step will attract huge investment in Green Hydrogen and make India an export hub by 2030. There is no revenue loss incurred in doing this, as Green Hydrogen is not being produced in the country to date. Furthermore, all lending decisions and investments by Banks and NBFCs as well as all Government subsidies and grants should be linked with ESG scores," said PHD Chamber of Commerce and Industry.

The Budget 2023-24 will be presented by the union minister of finance Nirmala Sitharaman on February 1, 2023. The pre-budget consultations have started from November 21, 2022.

[The Economic Times]