16 February 2019, 03:02 PM

Interim Budget Reactions 2019

Interim Budget Reactions 2019

CHAMBER VIEW

The Bengal Chamber

We feel that the Interim Budget of 2019-20 is a forward-looking budget in an election year. There’s emphasis on raising farmers’ income. It also laid stress on the pension programme for the organised sector, increasing gratuity and ESI limit, providing tax benefit to women entrepreneurs and the biggest ever outlay to the defence sector. The real estate sector is one of the biggest beneficiaries of the reliefs provided in this budget. However, it does not specify the avenues for resource building.

Bharat Chamber of Commerce

Sitaram Sharma, President, Bharat Chamber of Commerce, Kolkata, stated that the Interim Budget has treaded the expected path of a populist election year budget promising pro-poor, pro-farmer and pro-middle class policies without any direct proposal to expand industrial, manufacturing and economic activities. The large emphasis on infrastructure development, both social and physical, may boost the growth of some core industries.

There is no change in income tax slabs for individuals and the benefit of exemption would be available by way of rebate only if the taxable income does not exceed Rs. 5 lakhs. The absence of any rebate in corporate tax does not provide any kind of hope for industries as no relevant measure has been proposed in favour of industrial development. Section 54 exemptions on capital gains for investment in two houses once in a lifetime is a special takeaway from this budget. Interest subvention of 2% on loans up to ` 1 crore will provide modest relief to the MSMEs as the budget remained silent on stating any means for enhancing capital formation.