Mumbai: The union budget is around the corner and, as always, companies and individuals are expecting changes in taxation structure. The Economic Survey tabled in the Parliament on Monday highlighted that India’s indirect tax base has increased by more than 50% with the rollout of Goods and Service Tax (GST) last July. Given this context, government’s taxation policy in Union Budget 2018 is seen to have larger implication than previous budgets.
A survey of KPMG India, where 300 senior finance professionals across various sectors were polled, reveals that a majority respondents think that tax environment has improved over last fiscal.
Some of the other highlights of the survey are as follows:
According to the survey, the recent US tax reforms may get mirrored in the Indian budget through reduction in corporate tax. Majority of these respondents expect other levies such as minimum alternate tax, securities transaction tax and dividend distribution tax to remain unchanged.
In the run-up to the budget, there has been considerable discussion around taxing long-term capital gains. The survey reveals majority of the respondents see introduction of such tax as their biggest apprehension, followed by introduction of inheritance tax/estate duty.
Individuals expecting tax relief see increase in income tax slabs as most beneficial. Majority of poll respondents also feel that the government should introduce additional measures on ultra-high income earners (over Rs5 crore).