Young professional in the financial services sector, New Delhi
For young professionals in the services sector with high disposable income, any policy impact on their spend-to-income ratio is bound to catch attention, though sensitivity is higher on the denominator!
We have to pay, at an average, 25% of our salary as taxes. The finance minister has increased the exemption limit by Rs10,000 and then dented this comfort by an additional 1% in education cess. And there’s the disguised blow of ESOPs being taken away from fringe benefits.
Our spending is channelled towards housing, travel, entertainment, consumer durables and much more. The key word in such spending is ‘value for money’. But taxes today skew the prices of organized sector goods versus those offered in the grey market. I believe the consumers’ burden of indirect taxes should be minimised, simply because it is tantamount to ‘double taxation’ and a detriment to consumer demand.
The high rate of inflation is our current concern. Employees now expect their annual increment to beat the inflation rate by at least 500 basis points, so they get some real benefits! The initiatives to curb inflationary pressures by slashing tax on petrol and incentivizing oil seeds output are welcome.
We don’t mind paying up provided we can see more tangible outcomes from the government in terms of city logistics, law and order, healthcare and also real impact on education for the masses, for which a serious improvement in governance is a must. Overall, the Budget’s impact on employees seems ‘neutral,’ but