For the 2022-23 Budget, the government should restore the incentive of 150 percent depreciation for R&D, applicable in 2012-16, (tentatively) and which was then removed.
Many companies in the auto sector, and in manufacturing, industry want this benefit to be restored, as it would enable them to up their R&D spend, and invest in technology for alternative fuel, EVs and imports. This is the right time as entrepreneurs know it takes 4-5 years to commercialise R&D investment into a marketable product and/or service.
It is commendable that the government has clearly stated its infrastructure spend at the national and state level, and the country is building about 40-48 km per day. In this year’s budget, I would like the finance minister to detail ways in which the spend applies to sectors like steel, cement, coal and automotive transport. This will help us to plan better our capacities and make them available to the government.
We need a reclassification of GST and the eco-system for which we have asked for SOPs. There have been real delays, which affect investor confidence. The inverted structure in which RM is highly taxed but the final product is taxed at a lower rate requires addressal and, which is pending since a decade.
Rationalising GST would help and give more clarity to the end buyer.