While the Union Budget could focus on some more rationalisation on the tax front as usual, it has got very limited scope on this front. However, there is a scope for removing various cess that were part of the infrastructure spending. Budget should also provide a road map on the ways and means to finance the infrastructure project. The government may probably permit banks to raise exclusive resources through issuance of bonds to finance the infrastructure projects.
Housing sector needs more attention in the Budget. The creation of wealth has played a big role in the economic growth; however, they it has not contributed much to the exchequer so far.
Therefore, the housing sector should be regulated by a nodal agency jointly with respective state governments on the lines of TRAI, NHAI etc. Like capital market reform, the real estate sector reform should be introduced. The Central government should charge a cess for every square foot of transaction both for housing and commercial properties.
The Budget should focus on unearthing black money by imposing a penalty on all transactions in the housing sector below the price provided by the state governments.
The state governments should revise the price chart once in every three months. This would eventually help developing real estate mutual funds or real estate private equity funds. To increase the number of taxpayers, the post office could be used as a nodal agency in supporting IT authorities in collecting the PAN application forms. The post office branches and employees should get incentives on the basis of per PAN application. The Budget should focus on public sector enterprises (PSE) reform. Indian private corporates have benefited so far due to sweating of assets, thus, improving the productivity of the assets.
Mergers and acquisitions have been unlocking value for shareholders in the private sector and discovering new value for owners/promoters. In the entire process, the private sector’s market cap has gone up significantly in the last few years. However, the value of the BSE PSU index has remained more or less the same in the last one year.
Courtesy : Asianage.com
Housing sector needs more attention in the Budget. The creation of wealth has played a big role in the economic growth; however, they it has not contributed much to the exchequer so far.
Therefore, the housing sector should be regulated by a nodal agency jointly with respective state governments on the lines of TRAI, NHAI etc. Like capital market reform, the real estate sector reform should be introduced. The Central government should charge a cess for every square foot of transaction both for housing and commercial properties.
The Budget should focus on unearthing black money by imposing a penalty on all transactions in the housing sector below the price provided by the state governments.
The state governments should revise the price chart once in every three months. This would eventually help developing real estate mutual funds or real estate private equity funds. To increase the number of taxpayers, the post office could be used as a nodal agency in supporting IT authorities in collecting the PAN application forms. The post office branches and employees should get incentives on the basis of per PAN application. The Budget should focus on public sector enterprises (PSE) reform. Indian private corporates have benefited so far due to sweating of assets, thus, improving the productivity of the assets.
Mergers and acquisitions have been unlocking value for shareholders in the private sector and discovering new value for owners/promoters. In the entire process, the private sector’s market cap has gone up significantly in the last few years. However, the value of the BSE PSU index has remained more or less the same in the last one year.
Courtesy : Asianage.com