Industry bodies are desperately seeking tax cuts, but analysts and experts feel that the government is unlikely to slash taxes at least.
Will it? Won’t it? — this is the question on top of everybody’s mind who waits to see if the Narendra Modi government presents a 2007-sops-filled budget this election year too. However, bazaar pundits opine that lack of fear of defeat has emboldened the government which is likely to continue on its confident spree of levying more taxes, like in all previous years.
Industry bodies are desperately seeking tax cuts, but analysts and experts feel that the government is unlikely to slash taxes at least.
“They have already started preparation for Vibrant Gujarat 2013 to be held after elections. The best we can hope is that taxes are not increased further,” said a senior official of an industry body requesting anonymity.
Vimal Ambani, MD of Tower Overseas, says, “GST would have been a big relief to consumers and traders, but state government is not willing to implement GST as of now. It would be a big relief if state government gives relaxation on electricity duty, but I am not expecting it from Vaju Vala in this budget.”
Interestingly, Yatindra Sharma, former president - CII Gujarat council, believes that chief minister may not need populist budget this year.
“Though it is election year, Modi has already declared several projects during Sadbhavna Mission. So now, I am not expecting any populist measures in the budget. However, government may think of giving relief in electricity duty,” he said.
BJP government had offered series of sops in the 2007 budget ahead of the assembly elections. There were cuts in electricity duty rates, vehicle taxes, stamp duties and more. However, post-2007, no relief has been forthcoming from the masses reeling under inflation.
Octroi was abolished and replaced by VAT in 2006. In 2007 budget, electricity duties being levied on farmers for 22 long years, was abolished. Duties were also considerably reduced - in the range from 15% to 10% for rural areas and 20% from 30% in urban areas - for residential and recognized educational institutions.
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