Increased tax exemptions to improve real estate and consumer durables sales
The Narendra Modi government’s maiden Budget is targeting on increasing consumer demand in the economy by increasing disposable income in the hands of people. The budget wants to give the much awaited boost to the real estate sector, which not only boosts demand for housing, but other consumer durables as well.
Since after buying a house, anyone will spend on the woodwork, furniture, consumer durables and electronics, paints, interiors etc. other industries also get an indirect benefit.
In terms of direct proposals, finance minister Arun Jaitley did not announce much, barring tax cuts on a few products such as small television sets, shoes and soaps, which will make these goods cheaper.
Soon Kwon the managing director of LG Electronics in India is hoping to see better sales figures as the increased tax exemptions will leave consumers with extra disposable income to invest in white goods.
ShishirBaijal the chairman of property consulting firm Knight Frank India was all praise for the budget and mentioned that it is a path-breaking Budget with significant focus on real estate and infrastructure.
Taxes on tobacco products and aerated water containing sugar (like fizzy drinks) have been hiked which is a good move as these things negatively impact the health of the nation’s citizens.
Nadia Chauhan the joint managing director of ParleAgro, stated that the excise duty cut on machinery used in the manufacturing of packaged products will help companies save costs and manage their capital expenditure better. Hence the budget is looking at improving produces from the manufacturing industry and improve GDP.
Source- The Financial Express
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