Removal of dividend distribution tax is a welcome move
By Gopichand. P. Hinduja
Given the hard constraints in the economy, the Finance Minister has done a creditable job at balancing the need for an economy in a revival mode and fiscal orthodoxy. The FM couldn’t have been aggressive on either count.
The underlying theme of the slew of initiatives seems to be to reduce the cost of doing business in India. The removal of the dividend distribution tax is welcome. The proposal to list the Life Insurance Corporation is a bold move and signals the government’s resolve towards market discipline.
Seventy of the 100-off tax exemptions in the statute have been removed. The proposed Tax Payers’ Charter, which is to be incorporated in the statute, will go a long way towards assuaging concerns among global investors, by assuring the decriminalisation of offences under the Companies Act.
Given the job creation potential of the auto sector, which is currently is the depths of distress, the Budget could have done more. The slippages during implementation of infra projects have to be eliminated.
(Author is Co-Chairman, Hinduja Group)
