The traders and manufacturers who have been badly hit due to the continued economic slowdown that unfolded after the implementation of Goods and Services Tax (GST) and demonetisation have given a mixed response to the 2020 Union Budget presented by Finance Minister Nirmala Sitharaman on Saturday.
They think “The government’s decision to abolish the Dividend Distribution Tax (DDT) that is levied on the dividends issued by the companies is a welcoming move. It was unnecessarily obstructing the flow of foreign direct investment. Doing away with this tax will boost market sentiment and will also give a major push to investment.”
The main concern in the country at present is rising unemployment. The budget doesn’t address this huge problem. Job creation should be a priority of this government. However, the FM announced 16 action points plan for the farmers and is committed to double their income by 2022. This is a good sign for the agrarian sector.
This budget will give a boost to the startups because the government has eased the burden of taxation on employees by deferring the tax payment. A significant announcement has also been made for MSMEs.
While some think, “There is nothing positive in this budget for traders. The FM has announced simplified return format for GST but there should be a uniform slab and tax deduction which most of the traders demanded. We need clarity from the government if there will be a tax deduction otherwise slowdown in the market will continue.”
Income tax rebate will benefit the middle-class people who are salaried but what about the traders who are the backbone of the Indian economy?
Simplified GST returns from April 1 which will definitely help but main issue is different. They largely supply in small cities and towns where many buyers still don’t have GST registrations. They are less educated and they find GST complex. They cannot give supply to them which has also adversely impacted our business.