In the last two years, startups in our country faced unprecedented challenges due to the ongoing pandemic. Funds dried up for most, many entrepreneurs reeled under the multiple taxes, and quite a few shut down operations.
Now, all eyes are on Finance Minister Nirmala Sitharaman as this year’s Union Budget is about to be unveiled. Start-ups are looking for policy changes that will help them surge ahead and boost recovery from the long drawn-out pandemic.
Let’s take a look at what they are expecting from the Union Budget 2022-23:
Ruchika Bhagat, MD, Neeraj Bhagat & Co.
I am hopeful that the upcoming Budget will give the economy a much-needed boost. A complex unfriendly capital gains tax system is a big reason why many Indian start-ups fail to sustain in the long run, so we believe that the government should look at assisting start-ups through policies and support mechanisms towards domestic capital participation, incentives to set up incubators in every state, tax exemptions in foreign direct investments, and a high focus on start-up infrastructure development.
As far as the Hospitality Sector is concerned, we are hoping that the government should offer interest-free loans, subsidies, reduction in tax structure, which will help in the recovery and covering up the previous losses as the pandemic was particularly hard for this sector.
The focus of this year’s Budget is expected to be growth-oriented. The government would prepare a balanced budget that would account for growth as well as revenue-generating options. Considering the impact of the current pandemic the budget should focus on general economic growth.
