Budget 2016 : Surprises and Disappointment

Hit Brother

9 years ago

Finance Minister Arun Jaitley presented his Union Budget in Parliament today.

Where Jaitley Surprised

•   No increase in Service Tax
•   No changes to Long Term Capital Gains tax on equities
•   Redressal mechanism for infrastructure projects
•   Stayed with the fiscal consolidation road map
•   Steps to open up the road transportation sector (abolish permit raj over time)
•   Reduced corporate tax for new companies
•   High net worth dividend earners (earning more than Rs 10 lakh as dividend income) to pay additional 10 percent tax
•   STT increased
•   Domestic tax amnesty scheme announced

Where he disappointed

•   Not a bold budget
•   No out of the box measures to boost growth
•   Public sector investment may not be enough to kick start the investment cycle
•   Just Rs 25,000 crore for PSU bank recapitalisation; seen as inadequate
•   No major announcement on banking sector reforms
•   Infra cess on cars (they will now turn costlier, especially diesel cars which carry a higher cess)
•   No across the board reduction in corporate tax that was keenly anticipated
•   Divestment target on the lower side, raises concerns about revenue mobilisation