BHUBANESWAR, INDIA - The union government of India presented the General Budget for the fiscal year 2016-17 in Parliament on February 29th, 2016. An efficient tax regime significantly improves the competitiveness of the Indian industry in the global marketplace. Considering that the provisions in the Finance Bill affects all players of the economy, right from manufacturers to service providers to exporters and importers, World Trade Centre (WTC) Bhubaneswar and Xavier Institute of Management, Bhubaneswar (XIMB) presented a moderated panel discussion on the ‘Implications of the Union Budget 2016-17 on Direct and Indirect Taxation’ on 2nd March 2016, at the XIMB Auditorium, Bhubaneswar.

The discussion staged four panellists, all of whom were eminent experts – Mr. Prashanth Hota, Executive Vice President, Jindal Steel & Power Ltd., CA A.K. Sabat, Partner, A.K. Sabat & Co., CA Rajiv Sahoo, Promoter, M/s SRB & Associates, and Prof. D.V. Ramana, Faculty, XIMB-XUB along with Mr. Dilip Satapathy, Editor Business Standard present as the moderator for the evening. 

The moderator Mr. Dilip Satapathy opened the floor for discussion and raised relevant questions throughout the evening such as “Would the desire of the Government to achieve 7.6% growth rate have been achieved if the money had been routed to the middle class rather than the poor?”. Following which Professor D.V. Ramana the first panellist to present his views on the budget in his address emphasised that the rising problem of inequality should be the immediate point of concern. “Taxation is an important economic and fiscal tool to address inequality”, he said, adding that “Inequality continues at the cost of maintaining fiscal deficit because at the macro level, we have not addressed the issues that make inequality persist.” 

Mr. Prashant Hota while addressing the audience next began by saying that designing a budget is not an easy task. He said that the real issue is that of growth in demand. He deliberated that unless the issues of rural population, which constitutes 60% of the total population, is addressed, demand won’t go up. He mentioned that while the demand is declining in other countries, in India, it has increased by around 4-5%. He also added that the “Corporate sector cannot survive without the robust rural sector”. Therefore he advocated that the union budget has addressed the right issues. Commenting on the high investments in roads, he said that “A good road is an answer to anything” as it facilitates the development of the economy.
Next to address the audience was CA Rajiv Sahoo. He agreed with Mr. Prashant Hota and added that “The banking sector is a major catalyst in the system”. 

He also warned that if the nation goes on taxing the rich, they will move to places where they find more benefits, but they are the ones who provide employment. In this regard, he said that the start-up culture is a step in the right direction. He also deliberated that there are leakages at every step, but with the right governance and technology, they can be arrested. He closed by wishing success to the budget despite all the criticisms that are going its way.

CA Arun Kumar Sabat one of the key panellists then presented his views and started off by saying that he agreed with the part about leakages being there, and stated a proverb that “Black money is like a cobra in your house”. Having thoroughly analysed the budget, he advocated that the allowances are not sufficient to cover expenses, hence raising the question as to where does the extra tax money go. The salaried people are at a disadvantage as a result of this new budget, he said. “This thinking of politicians for the salaried class is dangerous. In addition to this burden, salaried class also has to face inflation is a taxation without income” he added.

The discussion ended with a brief question and answer session and a vote of thanks by Ms Nimeshika Natarajan, Manager, Trade Research WTC Bhubaneswar.

PHOTO (L-R): CA Rajiv Sahoo, Prof. D.V. Ramana, Mr. Dilip Satapathy, CA A.K. Sabat, Mr. Prashant Hota at the panel discussion.

To learn more about WTC Bhubaneswar, click the source link below: