According to the experts suggestion, improving consumption for the middle class is significant and can be done by implementation of fiscal measures.
Manmeet Kaur, Partner, Karanjawala & Co, said, ‘The government could consider implementing a range of fiscal measures such as providing tax breaks to boost consumption for the middle class through standard deductions/restructuring of tax slab in order to increase disposable income, thereby enhancing their purchasing power’.
She further added that it can be expected to give some tax incentives for homebuyers and increase funding for affordable housing. ‘We expect a way to control inflation and the introduction of new investment policies, to enhance the overall economic growth’, said Kaur.
According to the experts, providing tax deductions for investors when they invest in startups would increase investment in early-stage companies, which is significant for their growth.
Yagnesh Sanghrajka, Founder and CFO at 100X.VC said, ‘Parity in taxation of cap gains from listed and unlisted shares. Discontinuance of Taxing ESOPs on exercise. Tax should be levied on the sale of shares issued in ESOP. Relaxation in regulations for outbound investment by AIFs up to a threshold of $200,000 per year. Tax Incentives/deductions for angel investors for investment in startups in the year of investment’.
He added that this will see a growth in early-stage funding. Reduced or higher threshold GST rates for startups to help grow them and save them the burden of GST so early in their journey.
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