Finance minister Arun Jaitley will present Union budget of India for 2015-16 on 28th February. Now there are some points which should be included in it.
1. Infrastructure Projects - There are nearly 5 lakh crores worth of infrastructure projects which are stalled. The reason being inflation, rise in prices of cement and other materials. Banks are not willing to give them loans due to the risk of possible default. The budget should present a plan under which it should give preference to some selected projects which can be completed. This would ensure that capital is not blocked.
2. Retrospective Tax Laws - Tax system in India is very uncertain. On one side we are asking to "Make in India" and on the other side there is a confusion in the tax regime, particularly retrospective tax system. There should be stable tax laws to eliminate the fear of uncertainty among the potential investors. This would give FDI and FII a big boost.
3. Labor Laws - Labor laws in India also need an overhauling. Stringent checks should be placed. Trade unions and companies should work together on specified set of rules to prevent conflicts.
4. Goods and Services Tax (GST) - GST is the much-awaited taxation structure. The reason being simplified tax laws. It will eliminate cascading effect. Credits of excise duty which is included in cost can't be taken by the trader against the VAT paid and other case where credit of CST is not available against VAT. This is a double taxation system which will be eliminated in GST regime. Main hurdles are being faced due opposition from state governments fearing loss of power and funds.
5. Boost Public and Private Consumption - This can be encouraged by giving public more disposable income at hand which is possible by some tweaks in tax slabs i.e. increasing the exemption limit to Rs. 300,000. More consumption means more investment which in turn would boost the economy. Cutting repo rate by 25 basis points is the first step which is already taken by the RBI.
6. Good Samaritan Law - As per wiki "Good Samaritan laws offer legal protection to people who give reasonable assistance to those who are injured, ill, in peril, or otherwise incapacitated. The protection is intended to reduce bystanders' hesitation to assist, for fear of being sued or prosecuted for unintentional injury or wrongful death." We really don't need any reason not to consider this. Thousands of people are being killed in road accidents and bystanders are not willing to help them because of fear of exploitation by police along with other fears like monetary loss. A law should be made where expenses incurred by Samaritan should be reimbursed and she should not be given any trouble for her good deeds. Anyone, including the policemen, going against the rules or misbehaving with samaritans should be punished with fine or imprisonment or both.
Chiranjiv Kumar
Email - chiranjiv_mbaca@yahoo.com
Web - www.fundspedia.com
CAclubindia
