Mitesh Shah, Head of Finance, BookMyShow on the implications from this Budget.
‘The interim budget for 2019 has been a shot in the arm for several sections of the society through its tax relief measures for the middle class and mega schemes for farmers. We appreciate the budget’s recognition of India’s startup ecosystem’s contribution to the economy and the creation of a Digital India in Vision 2030 is indicative of the long road ahead for this ecosystem. The budget however, did not offer clarity on issues surrounding the angel tax much to the dismay of the industry’s expectations. Facilitating a conducive growth environment for such companies is key and hence, clarity around taxation and the regulatory environment will further help build a strong technology ecosystem which can contribute to the government’s vision of India as a $5 trillion economy over the next 5 years.
It is probably for the first time in several years that the entertainment industry has been hailed as a force of employment generation. While the Finance Minister has offered incentives to the film industry, it is also worth recognising the huge scope that live entertainment offers, for employment and growth of the Indian economy. We hope that the GST Council along with the government can find solutions to streamline the existing tax structures for this sector as well and bring it below the current rate of 28%, to enable a well-rounded ecosystem.
We whole-heartedly support the government’s move to curb piracy through the introduction of the anti-camcording provision in the Cinematography Act. With these measures, we expect the regulatory framework of the entertainment industry to significantly change for the better. There has been a slight slippage in the fiscal deficit for FY19 with the government having revised it to 3.4% from the earlier budgeted 3.3% of the GDP. While the Budget has offered various increases in outlays, no new policy to boost revenue found a mention by the Finance Minister. This may further strain the government’s ability to meet its fiscal deficit target and may have an impact on India’s credit rating. The introduction of a new Direct Income Support Scheme for farmers and subsidized agricultural loans are likely to boost the rural economy but the government may have to be watchful of possible rise in fiscal costs as a result of this’.
