BUDGET 2021 Expectations

BUDGET 2021 Expectations

TELECOM SECTOR

* Cut licence fee from 3% of AGR to 1%

* Cut spectrum usage charge by 3%

* Exempt 4G/5G network gear from customs duty

* Cap customs duty on handsets at 20%

REAL ESTATE SECTOR

* Industry status; widen definition of affordable housing

* One-time loan restructuring

* Increase home loan interest, principal payment limit

* More funds like SWAMIH for last-mile funding of stressed projects

CONSUMER DURABLES SECTOR

* Extend phased manufacturing program to all categories

* Incentivise purchase of durables

* Fiscal incentives for energy-efficient products

* Income benefits to individuals to lift demand

ENERGY & POWER SECTOR

* Abolition of cess on Crude from pro-NELP & nomination blocks

* Reduction in royalty on oil and gas production, lower import duty on LNG

* Relief from import duty on solar cells & modules

* Rationalisation of levies on generation of distribution components

AVIATION SECTOR

* Comprehensive relief package

* Bring ATF under GST

* Financial incentive for airlines including low-cost credit

* Airports seek increase in liquor allowance from 2 to 4

FMCG SECTOR

* Measures to boost demand

* Reduce personal Income Tax

* One-time direct fund transfer to weaker sections

* Loan relief to MSMEs

HOSPITALITY & TOURISM SECTOR

* Infra & industry status to hotels, restaurants and resorts 

* Minimum alternate Tax waiver for 3 years to hotel sector 

* Extend investment-linked benefits to hotels; I-T benefits for travel

* Recognise tourism sector revenues at par with merchandise exports

AUTOMOBILE SECTOR

* Incentive-based scrappage policy for automobiles, funding for purchase of buses by states

* Higher 25% depreciation rate for PVs & 2Ws

* Reinstatement of investment allowance for component makers

* Include EV industry in the priority sector lending category

STARTUPS SECTOR

* Widen ambit of ESOP tax benefit to all registered startups

* Remove condition of inter-ministerial board certificate for angel tax relief

* Change regulations for greater capital flow into startups

* Make gains on new investment into startups tax free; Roll-back "super-rich surcharge

RETAIL SECTOR

* Implement National Retail Policy; allow retailers to register as MSMEs

* Encourage states to adopt Modern Shops & Establishment Act

* Decriminalise Legal Metrology Act to improve EoDB

* Expand PM Mudra Yojana to digitalisation in kiranas, small retailers

HEALTH & PHARMA SECTOR

* Setup a health fund

* Incentives for health insurance

* Enhance incentives for R&D

* Cut customs duties on industry inputs