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Budget 2021: What industry wants

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Budget 2021: What industry wants 2

India Inc wants a strong stimulus dose for the pandemic-hit economy in the upcoming budget to help it rebound from the Covid disruption. ET looks at the wish list of some key sectors:

Automobile

  • Incentive-based scrappage Policy for automobiles; funding for purchase of buses by states
  • Higher 25% depreciation rate for passenger vehicles & 2-wheelers
  • Reinstatement of investment allowance for component makers
  • Include EV industry in the priority sector lending category

Aviation

  • Comprehensive relief package for aviation sector
  • Bring ATF under GST to reduce incidence of tax
  • Financial incentive for airlines including low-cost credit
  • Airports seek increase in liquor allowance from 2 to 4

Consumer durables

  • Extend phased manufacturing programme to all categories of durables
  • Incentivise purchase of durables
  • Fiscal incentives for energy efficient products
  • Provide income benefits to individuals to lift demand

FMCG

  • Measures to boost consumption demand
  • Reduce personal income tax put more money in hands of consumers
  • One time direct fund transfer to weaker sections
  • Provide loan relief to MSMEs; help to restart businesses

Real estate

  • Industry status; widen definition of affordable housing
  • One-time restructuring of loans
  • Increase home loan interest, principal payment limit for tax benefits
  • More funds like SWAMIH for last-mile funding of stressed projects

Retail

  • Implement National Retail Policy; allow retailers to register as MSMEs
  • Encourage states to adopt Model Shops and Establishment Act
  • Decriminalise Legal Metrology Act to improve ease of doing business
  • Expand PM Mudra Yojana to digitalisation in kiranas & small retailers

Startups

  • Widen ambit of ESOP tax benefit to all registered startups
  • Remove condition of Interministerial board certificate for angel tax relief
  • Change regulations for greater capital flow into startups
  • Make gains on new investment into startups tax free; Roll-back “superrich” surcharge

Hospitality & tourism

  • Infrastructure and industry status to hotels, restaurants and resorts
  • Minimum Alternate Tax waiver for 3 yrs to hotel sector
  • Extend investment-linked benefits to hotels; IT benefits for travel
  • Recognise tourism sector revenues at par with merchandise exports

Energy & power

  • Abolition of cess on crude oil from pre-NELP and nomination blocks
  • Reduction in royalty on oil and gas production; lower import duty on LNG
  • Relief from import duty on solar cells & modules
  • Rationalisation of levies on generation, distribution components

Telecom

  • Cut licence fees from 3% of AGR to 1%
  • Cut spectrum usage charge by 3%
  • Exempt 4G/5G network gear from customs duty
  • Cap customs duty on handsets at 20%

Health & pharma

  • Set up a health fund to deal with health exigencies
  • Provide incentives for health insurance to increase penetration
  • Enhance incentives for R&D
  • Cut customs duties on inputs used by industry

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