Economy

What the readers want from the Budget

| Updated on February 16, 2011 Published on February 16, 2011

Kamesh Ramamoorthy, Chief Operating Officer, Ramco Systems

M. P. Vijay Kumar, Sify Technologies

Shah Hakim Zain



Common tax structure

Single tax code that will ensure common tax structure for software and commodities will help in substantial savings. This will simplify the tax structure and make it easy to interpret for all. Sops for indigenous product companies that are investing in R&D in India and creating assets to service the global market. This could be in the form of listing them as preferred vendors for Government and public sector projects subject to them matching the required technical and product expertise criteria; investment allowance for certified indigenous product companies which will boost local companies to do R&D.

Strong focus on promoting Small and Medium Enterprises such as bringing back the special subsidies given to SMEs for investments in IT will help in faster adoption of IT among the SMEs; easy loans, and better interest rates.

Kamesh Ramamoorthy

Chief Operating Officer, Ramco Systems.



e-governance initiatives

I hope there will be an enhanced focus on e-governance initiatives through higher fund allocation and acceleration of deployment efforts. Through the Budget, the Government should reiterate its commitment to DTC, GST and Companies Bill.

“With reference to the broadband industry, the Government should remove service tax on consumer broadband for the next five years. This will significantly increase the penetration of household broadband connections and this in turn positively impact the economic growth of the country. Controlling food prices should be a priority; the Government should increase its focus on agriculture by granting incentives to encourage cost-effective production and higher acreage of agricultural land.

M.P. Vijay Kumar

Chief Financial Officer, Sify Technologies.



Private sector participation

Investment in infrastructure is a key factor to attain and sustain nine per cent or even double-digit economic growth. However, there is a gap in infrastructure targets and achievements with slow progress in several quarters. Effective incentives, fairer taxation, funding infrastructure augmentation in PPP projects and market friendly policies will be essential to encourage the private sector to contribute towards nation building activities, and will help India achieve a conducive environment for steady economic growth. Additionally, the government should also consider moving towards a ‘green taxation' system where industries, commodities and companies are taxed on the basis of their ecological footprint and use of non-renewable sources of energy.”

Shah Hakim Zain,

Group CEO, Scomi Group.



Tax benefit for CSR initiatives

The initiatives towards Corporate Social Responsibility (CSR) by organisations need more recognition in the Budget.

An amount equal to one and one-fourth times of any sum paid during a financial year for rendering CSR may be allowed as a deduction under the head Profits and Gains of Business or Profession in Chapter IV of the Income-Tax Act. This will encourage more companies to carry out CSR initiatives and will benefit the society.

CA. Praveen Venugopal

Deputy General Manager

Manappuram General Finance & Leasing Ltd.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on February 16, 2011
This article is closed for comments.
Please Email the Editor