Quotes by PwC India on Union Budget 2016 -17 - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
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Tuesday, March 01, 2016

Quotes by PwC India on Union Budget 2016 -17

Quotes by PwC India on Union Budget 2016 -17

Road Sector –
Enhanced allocation in road & highways sector by around 22% is definitely a positive for this sector.
However, role of private sector investment would be key to achieve the target of 10,000 km of National Highways construction during FY 2016-17.
Therefore, two initiatives such as Public Dispute Resolution Body and Guidelines for renegotiation of PPP contract are important to provide necessary impetus to the PPP model of procurement in roads and highways sector which has suffered due to disputes and litigations.
Vikash Kumar Sharda,  Director- Capital Projects & Infrastructure (CP&I), PwC India

Auto Sector
There are slew of measures in the budget to kick start the investment activity in the economy, creation of demand in the rural economy and capitalisation of nationalised banks should help in easing liquidity. Budget also has few incentives to put more money in the hands of small tax payers. Increased investments in the infrastructure, incentive to promote environment friendly vehicles (EFV) and investment in the rural economy should help few segments of automotive industry such as tractors, two wheelers and EFV.
However increase in tax on luxury vehicles, increase in infrastructure cess from 1 to 4% will have negative impact on passenger vehicles.
Abdul Majeed - Partner Price Waterhouse (also an auto expert)

Infrastructure Sector -
Several more initiatives were expected for infrastructure, particularly on implementation of Kelkar Committee recommendations to revive private investment. The inability of the Govt to continue large scale financing of infrastructure is visible in the Budget, and hence expect more announcements outside the Budget.

The most important one, i.e. Guidelines for Renegotiation of PPPs, has found mention, as also the Public Dispute Resolution Body. If these can be speedily implemented, the impact on the Sector would be much more than the long list of announcements in earlier Budgets.
Manish Agarwal, Partner and  Leader - Infrastructure, PwC India

"The FM has stuck to Fiscal deficit target of 3.9% in FY 2015/16 and 3.5% in 2016/17 in the backdrop of higher outlays for rural development, farmer welfare and transport infrastructure. A fine reading reveals that he has been able to manage this through continued excise duties on petroleum products, a lower than envisaged provision for bank recapitalization of Rs. 25,000 crore, and a possible delay  and moderation of the 7th Pay Commission recommendations by leaving the decision to a Committee."
Ranen Banerjee,Leader Public Finance and Economics, PwC India
PwC quote on MSME

This budget is a Budget for the M&SME sector with various policy measures and tax incentives focusing on their needs. Policy measures on encouraging entrepreneurship, enhanced spending on rural development and infrastructure including on roads and railway, focus on developing one crore skilled workforce could be a big boost to the sector.

 On the tax side, tax holiday to start-ups, lower tax rate of 25% on new manufacturing facilities and increasing turnover threshold to Rs 2 crore for presumptive tax rate of 8% are all welcome moves for the sector. A thumps up from the sector.
Alok Saraf, Partner - Private & Entrepreneurial Group, PwC India.
PwC quote on MSME

This budget is a Budget for the M&SME sector with various policy measures and tax incentives focusing on their needs. Policy measures on encouraging entrepreneurship, enhanced spending on rural development and infrastructure including on roads and railway, focus on developing one crore skilled workforce could be a big boost to the sector.

On the tax side, tax holiday to start-ups, lower tax rate of 25% on new manufacturing facilities and increasing turnover threshold to Rs 2 crore for presumptive tax rate of 8% are all welcome moves for the sector. A thumps up from the sector.
Alok Saraf, Partner - Private & Entrepreneurial Group, PwC India.
PwC comment on Real Estate

‘Housing for all’ seemed to be the flavour of the real estate part of budget today. The direct and indirect tax benefits for affordable housing should catapult the Smart city initiative.

Additional deduction of interest would incentivise the first home buyers to own the houses. The REIT/InvIT market should finally take off now that the Finance Minister has granted Dividend Distribution Tax exemption. Overall, the budget should have a progressive effect on Real estate sector.

Bhairav Dalal, Partner - Tax, PwC India (real estate expert)
Quotes by PwC India on Union Budget 2016 -17 Reviewed by S. Chitra on March 01, 2016 Rating: 5 Quotes by PwC India on Union Budget 2016 -17 Road Sector – Enhanced allocation in road & highways sector by around 22% is defin...

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