I really need to question few things here? What was the motto- To simplify taxing system or to collect revenue by different names for the government? We have the same Congress government which got different kind of weird named and all very complicated taxes and cess and now we hear of removing all of them to simplify taxing system. It’s beyond my understanding that for once the government shows its creativity by levying all kind of taxes and then with the change of name in the position of FM the base strategy also changes? Let’s get closer to it...
The “aam admi” budget has always being the focus of Congress Government and hence we can expect may more reforms and new measures in agricultural sector. Rahul Gandhi’s wish list says that “The party seeks to connect all villages via broadband and train scheduled tribes and castes for business development and give preferential treatment in government contracts. It also seeks additional boost for dairy farming, aquaculture, fisheries, horticulture and sericulture and a direct income support to farmers in ecologically vulnerable regions.
Besides, interest relief extension to farmers repaying loans on time and long-term collateral free education loan to needy students also forms part of the wish list.
Perhaps Rahul Gandhi and his team have understood that a true revival for the Congress party can only be possible by winning back the confidence of villagers, SCs and STs.
No wonder, then that major policy decisions aimed at further empowering these sections can be expected over the next few years.
Next, the new pension system (NPS) was extended to all citizens from May 1, but attracted a lukewarm response.
From the launch of the scheme till date, only 650 people have joined the scheme and a corpus of Rs 80-lakh has been accumulated. So, a major reform is expected to come here in the form of new deduction u/s 80C or give more tax benefits to NPS subscribers.
India was to see the new GST being up by 2010 but this seems still a long way to go.
Lot of promises being made, few fulfilled, many delayed, the economic crisis being one reason which took all the attention in early 2009. Many stimulus packages and options were worked on to deal the emergency situation, review will be done and as we are recovering from the crisis few packages may be withdrawn from the budget.
The government may extend the tax holiday for software exporters beyond March 2010, in the Budget on Monday.
Analysts said extension of tax benefits will be a great relief to the IT sector, which is reeling under the impact of global financial crisis, which has resulted into fewer numbers of orders and sharp reduction in earnings.
The hotel sector has been hard hit by the terrorist attack and the slowdown in the economy. It is expecting the government to announce a “stimulus” in the form of tax rationalization and award of “industry” status.
Excise reduction by cement sector and on consumer goods, CST removal on SEZ developers and many more. But core issues being the security of the country and its constant growth rate. If the budget can deal with these at the macro level many other issues will get resolved automatically at the micro level.
These elections were won by Congress Party as they displayed remarkably the strength of youth and the innovations that can be brought around to see a better, brighter and developed country, India.
So, will they be able to stand on those high hopes.
CAclubindia
