The upcoming budget should take steps to align the current tax regime with the now revamped regulations for Funds and fund managers operating in the Gift City IFSC based in Gujarat, the Indian Venture and Alternate Capital Association (IVCA) suggested on Thursday.

At the pre-budget virtual interaction held by the Finance Minister Nirmala Sitharaman with experts from Services and trade, the IVCA has underscored the need for the government to recognise private capital as a very important pillar for the nation’s aspiration to reach a $20 trillion economy in the next 25 years.  Hence, the flow of domestic capital in the total private capital market should grow at a rate which benefits the growth of AIFs in India, IVCA submitted. 

It was also suggested that tax policy should be simple and easy to understand, uniform, and revenue neutral.

Among the industry honchos who attended the virtual interaction include Jatin Dalal, Global Chief Financial Officer, Wipro Limited,  A Sakthivel, President, Federation of Indian Export Organisations, Sangita Reddy, Joint Managing Director, Apollo Hospitals Group,  N Jegatheesan, President, Tamilnadu Chamber of Commerce and Industry, Sanjay Leekha, Chairman, Council for Leather Exports, Gopal Srinivasan, Chairman, TVS Capital Fund Pvt Ltd,  Saket Dalmia, President, PHDCCI and Sabyasachi Ray, Executive Director, Gem and Jewellery Export Promotion Council.

Speaking at the pre budget meeting, Saket Dalmia said that budget must shower tax breaks on consumers to encourage them to increase their consumption of durable goods as well as real estate.

 Dalmia said there must be focus on decriminalisation and reduction in costs of doing business. For financial mistakes there should be financial redressal such as penalties and not imprisonment.

“We suggest decriminalisation of offences in GST Law by increasing threshold from ₹5 Crores to ₹20 Crores. These steps would go a long way in encouraging businessmen to expand their companies without fear of prosecution”, said Dalmia.

There must be focus on substantial reductions in the costs of doing business, especially at the MSME level. This would include reduction in cost of capital, power, logistics, and of land and labour. Furthermore, costs of doing business should not be more than those in the top 3 manufacturing countries namely China, United States and Japan, he added.

There is a need for calibrated and substantial expenditure by the government to bolster demand and Ease of Doing Business through Incentives on innovation and adoption of technology, especially for women start-ups and for R&D activity, Dalmia added.