HERALD: With the Union Budget not too far away, what are the general expectations of the common man from the finance minister?
SANDIP BHANDARE: In any budget we all look for three key areas. Firstly, we have to see the collection of revenue from the direct taxes, second is the indirect taxes and third of course is the kind of investment that we expect in our field of interest.
In direct taxes we do feel that the slabs of taxations which were there remained at almost a status quo level with few minor adjustments and this seems that with inflation fluctuation this needs to be reviewed dynamically. In order to give relief to the people, particularly in service and middle income group, these slabs needs to be relooked and reframed and increased to ensure that the honest taxpayers who are just living and surviving with honesty on a marginal level do not get hurt.
HERALD: Are standard deductions and concessions a major issue for the service class?
SB: It has been a long time since it is happening and there are no specific deductions for the service class unlike the business class where a business class can claim practically all its expenditure which a normal individual from middle class cannot do. I do feel that the government should lay special interest on reframing of this standard deduction whereby a basic amount is exempted from the salaried class. Also, with the growing trend, the recasting of the slabs is essential and should be broadened so that the higher rate of taxation should be targeted towards a person who is comfortable financially. As far as exemptions are concerned, all such exemptions need to be re-visited and increased which would give relief to individual and salaried class.
HERALD: But still the middle class is feeling the pinch of cess even after demonetisation and GST.
SB: Considering the present level of the cost, I think all those concessions needs to be revisited and should be substantially increased and this would give a primary relief to individuals and salaried class. There were talks that surcharge on education, cess etc would be abolished but it continues. There should be a standard mechanism. As far as the cess is concerned at some point of time cess was used to fund some specific projects. Such projects will continue to rise year after year but at some point of time, India needs to fund all such projects from the budget itself and not through special cess.
HERALD: What about the review of depreciation rates?
SB: Over the period the way the technology has been developing the rates are simply not matching with the growing rate. The government needs to have a re-look in these areas. The income tax has to look into the real income and not a hypothetical and construed one. The depreciation rate needs to be increased with changing modern technology.
HERALD: This may be the penultimate budget of this government or even last one as the next one in 2019 it may be a vote on account. What can the middle class expect?
SB: The actual impact of the budget comes after number of months. With the data available now with the government after demonetisation and GST, it seems it is the best time for the government to come out with the budget which should give relief to the common man. This is the right and most favourable opportunity for the government to increase the income tax slabs and allowance exemptions which will help the salaried class and the middle income group as these allowance like for example is too miniscule and unreal for tax exemption. There must be rationality in taxation. There may be huge investment needed this year in the farm and defence sector considering the priorities there.
HERALD: What are the expectations from Goa?
SB: As far as Goa is concerned, last year investment from the Central government in the budget was made to establish Indian Institute of Technology in Goa. Similarly, Goa would expect more such investments in the coming budget and that would be great thing and now Goa cannot ask for physical incentives. If the government of India can route their major investment through Goa, it would be most welcomed by the State and that will help business and employment growth in Goa.
