The increasing protectionist trend and continued and continued differentiation in import duties is at its paramount concern. Increasing the effective rate of expression involves two things -minute rate differences and taxing inputs. This also gives rise to special interest groups lobbying for higher import duties.
The decision to levy tax on transactions in virtual digital sets is the most notable measure. Some other measures include extension of tax incentives for startups by one year and extension of the commencement date for concessional tax for new entities by one year up to 2021, due to the delay in completion of the projects caused by the pandemic.
Accelerating growth with stability can be obtained if the budget is in the right direction.60% of the actual spending is at its State-level despite the hype in Union Budget. It is necessary to erect a competitive wall rather than relying on scaffolding through incentives.
The PIL schemes for 14 sectors are expected to improve the competitiveness of Micro, Small, and Medium Enterprises(MSMEs) besides a significant proposed on capital expenditures.