Shifting homes may be easier next time if Jaitley focuses on these things in Budget 2017
People who live away from their home or haven’t bought a home yet would know this better. Each time you plan to shift your home, you know the dark side of it. The people who would help you in shifting are the ones belonging to a sector that is by and large unorganized. While there are a few options for corporate companies to help you out, but many a times, there price range isn’t very comfortable for your pocket.
While not many lawmakers in government are keen on this sector, but for the common man’s sake, it’s the need of the hour.
Here’s what Bhargava feels need to be decided in the budget 2017 for a smoother shifting experience.
• Corporate tax rate should be minimised to 25%. (which is currently 30%) and service tax to 12% (which is currently 15%) : India’s growth pace is among the highest in the world yet there are many challenges confronting the economy. There isn’t any sector which is left unaffected by the corporate taxes and which ceases the growth and stability of the particular sector, the relocation industry is also facing the challenges of high private sector investments and the consumers are affected by it immensely.
To ensure the involvement and more business for the industry it is equally important to lower the corporate as well as the service taxes. This is equally challenging but the budget gaps can be filled by measures like widening the tax base, making use of funds available for public sector and etc. We suggest that the idea of bringing down the corporate tax by 25% and service tax by 12% would definitely add in the global development and employment creation too.
An appropriate tax system for rental costs which is currently subject to service tax and TDS at higher rates. The finance ministry could excise the service tax and TDS application on warehouse rental costs which has been of contention for some time.
• Service taxes should be on payments and not revenue incurred: Apart from the service tax applied on payments in a business transaction, the taxes applied on the revenue generated makes it more difficult to the industry to get benefitted. It should be an amendment in the budget that services tax to be imposed on the payments but not on the revenue collection. This way the industry will be able to grow financially and more business will be created for the industry.
• National road network should be improved. An efficient road network ensures low breakdown and better shipments: When the road network is improved, it will definitely mean more and efficient shipments. A complex geography like India needs a good array of efficient roads. If the government works down on making a good national road network, it makes the move completed without any particular damage which in turn ensures more business for the relocation industry.
Also, a good transport and an efficient road system is a must for the common man too, they want to enjoy a hassle free ride too!
• Subsidies on adoption of the technology, transport, freight and warehousing: Making subsidies on adoption of technology, transport and freight system ensures productivity in the Packing and moving industry. It is important that technologies are embraced by stakeholders across various departments, vehicles, tracking, warehousing, packing, material handling, management systems, etc. In order to meet up with the growth requirements of the relocation industry, it is very important for the industry to grow. Also collaborative and platform ecosystems that encompasses the entire ecosystem of stakeholders needs to be encourage to get optimal benefit. Either new start ups could be given benefits to undertake developments or subsidies could be rolled out for adoption and participation.