In this article, we will discuss about the pre-budget coverage of upcoming Budget 2018 which will further discuss about the various expectations of the startup industries from this budget. Arun Jaitley, the finance minister of India will present the Union Budget of India of the year 2018-2019 on 1st February 2018. Under the Government of Modi, there will be the announcement of fully fledged budget as 2019 is the election year. The very next year, the finance minister will be presenting only vote on account in the year 2019. The main sectors included are education, health, real estate, logistics, ecommerce and agriculture.
Hopes of Indian startup companies from Budget 2018
- Taxation: The main focus is to increase the limit of tax exemption from INR 1.5 lakh to 2 lakh. Whereas the corporate industries are demanding reduction in tax as it was promised by Jaitley in the previous budget.
- Agriculture and Welfare: As 2019 is the election year, the government will make plan to increase the vote that includes labourers, farmers and middle class persons. Already decisions have been made by the council of GST to reduce the tax rates in restaurants and on the equipment of the farmers.
- Health Sector: This sector is hoping huge revenue allocation from the 2018 budget. The public sector investment in healthcare sector is the lowest accounting which is about 1.5 percent of GDP. They are expecting better infrastructure facilities, reducing GST on medicines, increasing healthcare specialists, e-pharmacy sector and large space for invention of new technologies.
- Real Estate: The industry expects no tax and hurdles of regulations. This will increase the transparency and also focus on credibility. The market consumers are expecting to revive the market of real estate. They expect to have lower rates of tax and paced up the status of infrastructure.
- Logistics: The removal of multiple taxes implied by state and central government makes tremendous effects on the logistics. It has the highest cost of logistics i.e. 14 percent GDP and expects to decrease this cost.
- Ecommerce: This sector expects to lower the digital transactions cost, reduce the rate of income tax for medium class and implementation of GST proposal.
- Education: They are expecting from the finance minister that they will give priority to the sector of education in the budget 2018.