The Union Finance Minister Mrs.Nirmala Sitaraman to revive the sluggish economy announced so much tax relief to corporate sector that her measures are termed as third Budget. A corporate leader Mr.Sameer Arora has said this announcement is bigger than the last 20 budgets.
It would start new economic circle in the country as corporate tax reduced from overall 30 to 22 per cent. The companies are given tax reduction of 1.45 lakh crores. It will encourage the investment, more employment and no lay off the workers.
All the tax exemption will come in effect from the retrospective effect from April 1.
The companies who have paid advance tax will get refund. The new companies which were taxed at the rate of 29.12 per cent now the tax is reduced to 17.1 per cent. These tax measures will give incentive to foreign companies to come and invest in India. It is the biggest booster dose to the sluggish economy given ever. It is aimed at to revive the national economy.
The automobile sector manufacturing cars, trucks and other vehicles was facing worst time. The sale of vehicles dropped from 30 to 40 per cent. Many units reduced the production and enforced lay off in its employees. The textile industries for facing glut in stock due to sharp reduction in the demands. The effect of recession also hit hard the hotel industries.
The Government by these measures there would be spurt in the economy as a whole and it would revive the purchasing in all the sector. Although the Government revenue will come down by 1.45 lakh crores, but it is recoverable in the GST with more purchases of vehicles will pick up upto full production level . There will be no GST on hotel room rental upto Rs.1000.
The hotel industries suffers most where there are more agitations and violence in the areas. People avoid going there. The Cinema business dead in Kashmir. The terrorists and religious fanatics termed the film against Islam and prevented the shows for last so many years.
In Manipur the tribal militants have not allowed the screening of Hindu film for last so many years. Now there will be no surcharge in the capital gain on the sale of shares. The tax cut measures has immediate impact in the Sensex have shop up from 2284 points to 38,000 points.
In the market economy there are ever growing clash between the traditional markets and online marketing. The online sale are offering huge discount. But it are imposing not required goods on customers under the tricky garb of ‘combo sale’. The quality of goods are also inferior.
It is pushing the items known as ‘second’ due to some quality deficits at the time of manufacturing process. It are disposed on reduced price. This is sold out in online sale on heavy discount. The Government should make out some plans to regulate the online sale and protection to retail and whole sale markets.