- In order to meet its commitment of making the corporate tax rate in India comparable with other Asian economies by 2019, the govt should make 25% as the single rate of tax for all firms
- The government is expected to introduce the Direct Tax Code (DTC) in line with internationally accepted best practices
The voters have delivered their verdict and it is now time for the government to deliver. With an aspiration to make India the world’s third largest economy by 2030 and a commitment to become a $5 trillion economy by 2025, the government has its mission set. However, a fine balance needs to be maintained among competing objectives of containing the fiscal deficit and providing necessary stimulus to propel the economy.
There is an enormous investment requirement and need to create jobs. Hence, the government has to instil confidence in Indian and foreign investors alike. A recent report released by the Department for Promotion of Industry and Internal Trade (DPIIT) on foreign direct investments (FDI) into India in 2018-19 shows that FDI has declined by 1% to $44,366 million.
The Union Budget 2019 to be presented by the finance minister on 5 July 2019, is a good opportunity to take some concrete steps in this direction.
Source: Livemint
