New Delhi: To be more helpful for small businesses and empowering entrepreneurs, Union budget 2022-23 must introduce startup friendly policies and tax relaxation to enable expenditure on innovation, businesses that make it easier for business and reduce compliance costs, many startups are said.
New reforms, policy assistance and supporting mechanisms to establish a focused approach in solving financial needs that are not met through technology will significantly benefit the economy, they emphasize.
“We have seen a substantial surge in digital payment adoption in the past year.
I hope that in the upcoming budget, the government will think of an alternative to the Zero MDR policy (Discount Merchant Level), because it will help promote electronic payments and encourage digital adoption Significant among businesses, “said Harshil Mathur, CEO and Co-Founder, Razorpay.
In last year’s budget, Minister of Finance Nirmala Sitharaman has announced Rs 1,500 Crore to further accelerate the growth of digital payments in the country.
Mathur said that it would also be desirable for the government to increase the contribution to fund funds for startup (FFS).
“Loan disbursement is complexity, tax automation and compliance, paper approval, and incentives to adopt digital banking practices will also be a change that can support MSME growth,” he added.
To provide incentives to startup, the government last year extended its feasibility to claim tax holidays for beginners until March 31, 2022.
It also expanded the release of capital gain for investment on March 31, 2022, to increase funds.
The country has also seen many startups giving incentives to their employees last year by buying back ESOs.
“Delaying tax payments when practicing options, plus a neglect tax for several ESOP receipts, will also be a change that should be praised in the new budget,” Mathur said.
According to Ravish Naresh, CEO and Co-Founder, Khatabook, they hope for a progressive budget, especially those aimed at promoting homemade startups that focus on solving problems for India.
“New reforms, policy assistance, and supporting mechanisms to build a focused approach in solving financial needs that are not fulfilled through technology will significantly benefit the economy,” Naresh told IANS.
“In addition, the focus of the sustainable government to improve digital infrastructure in this country will ensure progress towards equality in digital access at FY22-23,” he added.
In last year’s budget, the government said it would facilitate the formation of a world-class Fintech hub in the city of Gujarat International Finance TEC (gift).
The government also proposes a portal to collect relevant information about gig workers to help formulate social security schemes for them.
Vidit Aatrey, Founder and CEO of the Homegrown Meesho social trading platform, said that a single focus on adding offline MSMEs with online distribution can be an opportunity for economic transformation that changes the game.
“We want to see the focus of the government for policies that will create a level of playing levels for offline and online sellers with a turnover of less than Rs 40 Lakh,” said Aatrey to IANS.
“Simplifying GST Compliance Requirements for online sellers will also allow millions of small businesses to utilize e-commerce potential and contribute to Indian digital economies that grow,” he added.
In addition, Startup hopes that the government provides capital formation incentives in the field of logistics and cold chains through policy and infrastructure development.
Akash Gupta, Co-Founder and CEO, ZYPP Electric, said that they are optimistic that the government will announce new initiatives to encourage local EV creation, facilitate easy finance and create innovative EV ecosystems.
“We urge the government to reduce GST EV purchases and rental from 5 percent to 2 percent.
GST reduction will allow consumers to smoothly shift to EV,” Gupta told IAs.
The Indian startup raised a record $ 24.1 billion in 2021, a doubling increase in Pre-Covid levels, while $ 6 billion was raised through the public market with 11 IPO startups, the Nasscom-Zinnov report said last week.
The Tech Startup Basis India continues to witness stable growth, adding more than 2,250 startups in 2021, which is 600 more than 2020.