?? LIVE: India Budget 2023-24

Summary

• Key India Budget 2023 announcements by Finance Minister Nirmala Sitharaman today
• EY teams help you understand how Budget 2023 will impact the Indian economy, business community and individual taxpayers' take-home pay

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Tax and Policy highlights announced in the Union Budget 2023

With India being recognized as a “Bright star” in its 75th year of independence, Budget 2023 focused on:

• Uplifting the farmer community with strong thrust on the agriculture sector and rural development;
• Slew of policies and outlays aimed at skilling, digitization and technology infusion, innovation and infrastructure growth;
• Green growth with increased capital outlay on ‘waste-to-wealth’ plants and launch of PM-PRANAM scheme to promote usage of alternative fertilizers;
• Relief for salaried and middle class taxpayers by rationalizing the concessional tax regime and reduction of highest surcharge rate;
• Simplification of indirect taxes to deliver higher exports, higher domestic manufacturing, more value addition in economy and green energy and mobility

Please click here to access the webpage and the deck

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Sameer Gupta, Tax Leader, EY India on Budget 2023

Budget 2023 continues its growth focus led by capex push, which should result in a positive multiplier impact for the economy. The thrust on areas like transport connectivity projects and green projects will create new opportunities for the private sector and uplift demand. The businesses welcome the emphasis on trust-based governance and providing an enabling environment through ease of doing business, especially for the MSMEs. The rejig in tax slabs under personal tax should provide much-needed relief to taxpayers and may encourage higher consumption or savings.?It is a befitting Budget to usher India into Amrit Kaal.

-Sameer Gupta, Tax Leader, EY India

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Watch our Partners and Leaders decode Budget 2023 announcements on our YouTube channel

Catch our Budget 2023 playlist here: https://bit.ly/3XtVefS

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Amrit Kaal focuses on being a technology-driven and knowledge-based economy and as one of the primary visions of growth and job creation. The government has taken a big leap to embrace 5G much more swiftly by setting up 100 labs in engineering institutes for developing apps for 5G services, this will further boost the employment and business opportunities in the country. India has made remarkable advancements in the digital realm and various new initiatives have been adopted to improve the lives of people, accelerating the societal benefits of artificial intelligence under the vision of “Make AI in India.” Three specialized centers will be set up, which will conduct interdisciplinary research and will help in building a talent pool of skilled AI professionals enabling automation via technology in agriculture, health and sustainable cities.

The launch of National Data Governance Policy (NDGP) is a much-awaited and a welcome step to enable to country in availing the full potential of data. This will result in transparent and trust-based data governance, that will lead to a boost in data-based innovation and enhance the delivery of government services to the country’ citizens, especially in key sectors such as health, education, and law and justice.

-Bipin Sapra, Tax Partner, EY India

The budget is forward-looking and is striking a balance between farmers welfare, increasing agriculture competitiveness, supporting agriculture start-ups and being climate-friendly. Initiatives such as Digital Public Infrastructure, CoE on Artificial Intelligence, and agriculture accelerator fund will help realign information and market information asymmetry as well as allow entrepreneurship growth in the agriculture value chain. Bolstering investment in fisheries, and cooperatives and increasing credit availability will boost growth in these sectors with high potential. Initiatives on Millets, natural farming and horticulture clean plant will be critical for an India which is looking for healthier food, climate resilience and greater productivity. EY is proud to be assisting the government in many of these initiatives.

-Amit Vatsyayan, Leader – Agriculture, Social sector and Skills, EY India

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12:30 p.m.

Key Budget 2023 announcements include:

1. INR 35,000 cr allocated for priority capital investment towards energy transition.
2. Permitting acquisition financing by IFSC units of foreign banks.
3. Setting up of 100 labs to develop #5G applications.
4. Strengthening of grievance redressal mechanism for taxpayers.
5. Income Tax exemption rebate limit to increase to INR 7 lakh from 5 lakh under new income tax regime.
6. Reduction in highest surcharge rate to 25% from 37% in new tax regime.

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Amrit Kaal focuses on being a technology-driven and knowledge-based economy and as one of the primary visions of growth and job creation. The government has taken a big leap to embrace 5G much more swiftly by setting up 100 labs in engineering institutes for developing apps for 5G services, this will further boost the employment and business opportunities in the country. India has made remarkable advancements in the digital realm and various new initiatives have been adopted to improve the lives of people, accelerating the societal benefits of artificial intelligence under the vision of “Make AI in India.” Three specialized centers will be set up, which will conduct interdisciplinary research and will help in building a talent pool of skilled AI professionals enabling automation via technology in agriculture, health and sustainable cities.

The launch of National Data Governance Policy (NDGP) is a much-awaited and a welcome step to enable to country in availing the full potential of data. This will result in transparent and trust-based data governance, that will lead to a boost in data-based innovation and enhance the delivery of government services to the country’ citizens, especially in key sectors such as health, education, and law and justice.

-Bipin Sapra, Tax Partner, EY India

The budget is forward-looking and is striking a balance between farmers welfare, increasing agriculture competitiveness, supporting agriculture start-ups and being climate-friendly. Initiatives such as Digital Public Infrastructure, CoE on Artificial Intelligence, and agriculture accelerator fund will help realign information and market information asymmetry as well as allow entrepreneurship growth in the agriculture value chain. Bolstering investment in fisheries, and cooperatives and increasing credit availability will boost growth in these sectors with high potential. Initiatives on Millets, natural farming and horticulture clean plant will be critical for an India which is looking for healthier food, climate resilience and greater productivity. EY is proud to be assisting the government in many of these initiatives.

-Amit Vatsyayan, Leader – Agriculture, Social sector and Skills, EY India

5:30 p.m. IST

Angshuman Bhattacharya on Budget 2023 announcements for consumers

The budget, after an interval, has provided a boost to the middle class and rural incomes. As the fastest growing economy in the world, and the consumption power of the middle class, this budget has propelled the vision of making India a manufacturing hub as well as a consumption economy. The revised tax slabs are a welcome step towards improving savings and disposable income for households who have come out of a K shaped recovery post pandemic.

The make in India push, and reduction of import duties in crude and other raw materials would help in promoting consumption and creating employment. The budget also continues on the vision of data and digitization, with initiatives in agri startups, data governance policy, digi-lockers enabling the modernization agenda for business. In summary a progressive and positive budget, likely to drive positive consumer sentiment.

-Angshuman Bhattacharya, Partner & National Leader – Consumer Product and Retail Sector, EY India

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3:30 p.m. IST

Join our India Budget 2023 special webcast at 5:30 p.m. IST

Register at https://spr.ly/60413jXfS

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1:30 p.m. IST

Paresh Parekh on announcements for Start-ups

India #Budget2023 has provided further support to Indian start-up economy, which is already third largest in the world by way of allowing new set-up till 31 March 2024 for availing tax benefits and increase in period for safeguarding carried forward losses till 10 years. Also, proposed setting up of Centres of Excellence for Artificial Intelligence, Data Governance policy including access to anonymous data, Agri Start-ups, and expanded use of Digi locker are likely to provide more avenues for start-ups in different sectors.

-Paresh Parekh, EY India Partner and National Consumer Sector tax Leader

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Somesh Kumar on Electric Mobility

Electrifying mobility is one of the most important aspects of mitigating climate change and promoting green growth, a key focus area of the current budget.?We have close to 2 million EVs on the road and more than 50% of the vehicles are expected to be electrified by 2030 (varying across segments).?One of the biggest components of EVs is the battery and the budget provides for custom duty exemption on capital goods import required for manufacturing Lithium Ion battery cells.?This is one of the most capital intensive areas in the entire value chain and should go a long way in improving the viability of batteries and electric mobility sector.?

-Somesh Kumar, EY India Power & Utilities Leader

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Saurabh Agarwal on Budget 2023 announcements

Ease of doing business and larger compliances

The measures taken for ease of doing business, like usage of PAN as a common identifier for select government digital systems, mandate to Financial Regulators to look into reduction of compliance burden would be highly appreciated by the industry at large. Further, introduction of new provisions in GST Act which allow sharing of GST common portal data with other government agencies also shed light on government’s continued focus on strict compliance monitoring and inter-departmental data sharing.

Make in India

Customs duty changes/exemptions on parts of mobile phones and other products, capital goods for manufacture of Lithium-ion cells for use in Battery EVs etc. as well as in key sectors like Auto, Toys & Power are reflective of government’s continued impetus on promotion of domestic manufacturing industry and continuance of sector wise monitoring of Phased Manufacturing Programme(s). data sharing. However, the expectations of the industry on introduction of PLI schemes for new sectors or increased allocation of funds for existing PLI schemes didn’t find any place in the budget which may be disappointing for industry.

GST Changes

The Finance Bill proposes to deny GST credit on CSR activities.?This will likely help in settling the disputes between the industry and the tax payers.?While the same may not have direct impact on the industry as the non-creditable GST would be available for claim as part of CSR expenditure to eligible industry players. Further, introduction of new provisions in GST Act which allow sharing of GST common portal data with other government agencies also shed light on government’s continued focus on strict compliance monitoring and inter-departmental data sharing.

Green Hydrogen

The Union Budget 2023 considers Green Growth as one of the Saptarishi’ guiding through the PM’s vision of the Amrit Kaal, which is likely to place India in a strategically competitive position globally. Most importantly, the commitment to achieve annual green hydrogen production of 5 MMT by 2030 provides a strengthened head start to stakeholders and gives a strong vision to focus on. Further, the special focus for providing Viability Gap Funding (VGF) to Battery Energy Storage Systems with capacity of 4,000 MWH is an essential catalyst for this as it is also likely to provide prime support to Battery Swapping Policy envisioned by the Government.

Auto

The focus of the Union Budget 2023 is to promote manufacture of EV in India and accordingly Customs duty on import of capital goods for manufacture of lithium-ion cell for EV battery and import of specified components/ sub systems by testing agency is reduced. Further to push the Make in India agenda customs duty on SKD and CBU vehicles have been increased.

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