While we are on the verge of the new Union Budget for the year 2019, so with regards to the retail sector there are certain expectations expressed by successful serial entrepreneur and Managing Director of Wonderchef Home Appliances, Mr. Ravi Saxena.
According to Mr. Ravi Saxena, MD Wonderchef rationalisation of GST from the current 18% slab to 12% will boost sales for many consumer durable products. It will also increase the penetration of these durables in the rural market. Additionally, further development of rural economy will also lead to an increase in demand of the consumer goods. Schemes to boost the rural economy will certainly strengthen rural India further.
The biggest anticipation is on raising the Personal Income Tax Exemption slab from the current 2.5 lakhs to 5 lakhs. Additionally, it is expected that the deductions limit under Section 80C be raised, as it will result an increase in disposable income, spending power and purchase of durables.
The government should also consider to cautiously regularize e-commerce platforms, as online marketplaces have positively impacted consumer durable sales in our country.
Additionally, the government has reduced the corporate tax from 30% to 25% for MSMEs with less than Rs. 250 Cr turnover. A rebate on corporate tax is expected by consumer durables goods manufacturers.