Pune Inc: From changes in GST to green financing, what industry leaders expect from Union Budget

We spoke to business leaders to know what they want in the Union Budget:

Sudhir Mehta, Chairman & MD, Pinnacle Industries Ltd

I hope the Budget brings a widening of the tax net by taxing agriculture income above a certain threshold. There is also a need for a green financing mechanism for the introduction of electric buses and public transport in the country. I am looking forward to a reduction in GST slabs as well. Also, there should be some scheme where Government Receivables can be securitised so that private companies don’t become Non-Performing Assets because of overdue govt receivables. The metro systems will bring a big relief for most metro cities, including Mumbai. For these to be truly effective we need last-mile feeder connectivity with thousands of smaller electric buses that can be parked between metro pillars, with charging when not in use.

Dr Ganesh Nikam, MD and CEO, Biojobz

Post-pandemic, pharma, biologics, and Active Pharmaceutical Ingredient (API) manufacturers, among others, are looking forward to expanding the scope of Production-Linked Incentives (PLIs) for domestic production. This would give further R&D tax breaks and increase exports. Together, these can usher in a decade of double-digit job growth. The government of India should increase the health expenditure by up to 3 per cent of GDP, primarily investing in the health infrastructure of Tier II and III cities.

This is also the time to tame ‘the elephant in the room’, which is the archaic labour laws, which need a substantial overhaul in terms of work hours, doing away with multiple deductions to the Unified Deductions regime, industry-friendly retrenchment rules and exemptions to small manufacturers. Taxation-wise, I think the minimum tax slab should be raised to Rs 5 lakh and the tax deduction increased on interest paid to Rs 2.5 lakh. We should also do away with GST on health insurance premiums for the industry to grow.

Chetan Walunj, Founder & CEO, Repos Energy India Pvt Ltd

We are expecting two major updates in this budget. The previous year’s budget allocated good sums towards research and development. Multiple successful prototypes got the benefits of such budgets. This year, we expect funds to be allocated for prototyping and proof of concepts, which will enable many more successful innovations to see the light of day.

Our second expectation is that fossil fuels, ie petrol and diesel, will be brought under GST. Today, petrol and diesel are in the ambit of VAT, which comes under states and hence, causes a lot of price variations across the country. With a unified pricing and taxation structure, the consumer will largely be benefitted.

Harshwardhan Patwardhan, Founder, Chappers

A lower GST would help the overall industry as it would mean lower upfront costs while buying raw materials. This would result in lower MRPs for customers, which would mean higher demand for our products.