Unicon - Budget Wish list

                       

 

                                                               Budget wish list

Unicon Financial Intermediaries Pvt. Ltd.

 

Quote of Mr. Gajendra Nagpal, CEO and founder:

Industry specific demands:-

The Securities Transaction Tax (STT) regime and high stamp duty charges on share market transactions are the main reasons for the high cost of trading in India. There is no other country where both stamp duty and STT are charged on share market transactions. Stamp duty charges for share market transactions differ in each state and brokers are sometimes subjected to double taxation as the Maharashtra government demands tax from them even if they are based outside the state. The Govt. must reduce the STT and stamp duties. The issue of double taxation also needs to be addressed by introducing guidelines in order to avoid such taxation.

The government should clarify the ambiguity created by a circular of the Central Board of Direct Taxes (CBDT). It sets vague criteria for classifying short-term capital gains tax. A clear guideline must be introduced regarding such classifications.

The brokerage houses must be given industry status such as to make fund raising for brokers easier.

        

 

General demands:-

 

                                  Unicon wants the upcoming budget to be an investment budget.

 

The government should ensure that the budget further boosts the Indian economy. But considering the current fiscal deficit the hands of government seems to be tied. The budget should not let the deficit to go beyond the current levels such that it goes out of control. Dis-investment policy will come handy in earning additional revenues and as a tool to bridge the current deficit. But a major fact which has to be considered is a steep decline in the public consumption and investment, so the upcoming budget has to be an investment budget. Tax breaks for industry and sector-specific measures to stimulate a slowing economy can be introduced.

The government needs to gear-up the investment in infrastructure which will play a critical role in the long run. Infrastructure surely is a major agenda (power, ports, roads, airports) and must be given priority in the budget. The banking sector in India needs to be reformed by merging the smaller players and dis-investment by the government in the existing PSU banks such that it does not effects the ownership of the government. The Government needs to come-up with pronouncements regarding increasing sectoral cap in financial sector like insurance, banking and retail such as to attract foreign investments.