Reading the budget right

Industry associations need to SHARE INFORMATION with members

Trade and industry look forward to the presentation of Union Budget by the Finance Minister every year and industrial associations also gear up for it.

Before the budget, the associations spend weeks highlighting the demands of the industry to the government. Immediately after the budget presentation, the members need to be informed of the changes in taxations, the benefits and the likely issues that might affect the industry.

However, in the recent years, the budget speech of the Finance Minister does not have the details and the associations need to get into the annexure for the fine print.Some of them also co-ordinate with officials in the respective ministries to get the right details.

Auditor firms come out with brochures within a day with highlights of the budget, their observations and guidance and distribute these to their clients.

Industrial associations organise meetings inviting experts to highlight the major issues.

The experts get the required information and clarifications, says D. Nandakumar, president of Indian Chamber of Commerce and Industry, Coimbatore.

Such meetings are finalised a week before the budget.

This year, the budget speech did not have sector-specific announcements or details of the changes in the levies. However, there are not many riders too in the budget. Sometimes, there are clauses and the experts get the details that the industry will be interested in.

The budget speech should at least mention the important details in the direct and indirect taxes as this is what the members are interested in, say some of the associations here.

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