They said they were disappointed as there was no mention of either Foreign Direct Investment (FDI), or industry status for retail, despite recommendation by the Economic Survey last week to allow FDI in multi-format retail.
They however, welcomed the announcement of implementation of Goods and Services Tax (GST) from April 1, 2010. They said proposals like abolition of Fringe Benefit Tax (FBT), hike in the personal income tax ceiling and huge increases in outlay for infrastructure will bring indirect benefit to the sector by raising consumer spending.
Vishal Retail Group President Ambeek Khemka, while terming the budget as disappointing however, said that abolition of FBT and hike in allocation for rural and urban areas will lead to boost in demand.
While regretting government’s reluctance on FDI in retail, KPMG Partner & Industry Leader (Retail and Consumer Product Practice) Pinaki Ranjan Mishra said that steps like extending investment- linked tax incentives in cold storage and hike in income tax ceilings will bring some benefits.
