Startups and MSMEs Welcome Union Budget Proposals

NEW DELHI:
It’s a mixed bag for us. The extension of tax holidays for start-ups and capital gains will also spark greater capital activity in the investment landscape and serve as an enabler of robust early-stage venture funding for start-ups. In a big boost for startups and incentivize incorporation of one-person companies, such companies will be allowed to grow without any restriction on paid-up capital or turnover and to convert into any other type of company at any time. Under the impact of the pandemic, the announcement has come as a big relief for startups that have become a critical employment generator with 4,70,000 jobs. Such measures are likely to boost sentiments across the board among potential entrepreneurs who are keen on entering the market with their business ideas, said Shruti Gupta, Founder The Blush Bakery

We appreciate that the government’s focus on encouraging digital transactions and a strong push towards manufacturing in India will boost e-commerce growth in the long run. Mobile, charges, and power banks can be expensive in the coming times. This is because Finance Minister Nirmala Sitharaman has proposed to increase customs duty (import duty) on mobile phones and power bank sub-parts for FY 2021. The aim is to promote local manufacturing in the country, the rebate on all parts of mobile phones and parts of chargers is being withdrawn.

Now 2.5% import duty will be levied some parts of mobile phones and chargers will now be subject to 2.5% customs duty. Till now, there was no duty on these parts. Increasing custom duty will certainly make it expensive for the companies to procure these mobile parts. To make up for this, mobile companies may increase the prices of mobile and power bank in the coming time. The motive behind increasing customs duty is that the government should manufacture these parts in the country. And the pandemic has provided the center an opportunity to attract global manufacturers and make the country a manufacturing hub emerging as an alternative to China, says Akhilesh Chopra, Sales Director at Bluei.

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