The annual budget presented by Smt. Nirmala Sitharaman, the Union Minister of Finance and Corporate Affairs on February 1, 2023, proposes a particularly advantageous tax framework that will ensure that individuals and organisations stay motivated to comply with the tax provisions. Moreover, the proposed regime enables people to make strategic financial decisions by saving and investing their money.
Bringing online gaming within the purview of the tax regime will certainly broaden the revenue base and the re-introduction of the appellate authority of the Joint Commissioner (Appeals) has the potential to transform tax hearings through the effective disposal of pending appeals.
The budget is more sectoral in its approach when it comes to indirect tax with an increase in duty on articles of precious metals, toys, etc., and a cut in the import duty on gold and platinum. At the same time, the customs duty rate on silver items would be raised. Such changes in tax rates will affect the demand and supply of said metals, consequently having an impact on the trade balance. The lower rate of import duty on airplanes would encourage imports and also stimulate growth in allied businesses such as domestic aviation, maintenance, and repair services which will in turn create new job opportunities. On the other hand, increased customs duties on imported automobiles, bicycles, and toys will discourage demand for their imports and boost domestic output in these industries.
In a nutshell, we see this budget as another step towards achieving ease of compliance and the “Make in India” vision.