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Economics Indian National/ Domestic Affairs

Budget 2022 may further ease compliance burden for companies

New Delhi : Seeking to give further push to manufacturing sector and start-up ecosystem in the country, Union Finance Minister Nirmala Sitharaman may announce measures to reduce compliance burden for the industry while presenting Budget 2022 on February 1. In what suggests government is actively considering industry’s demand to reduce compliance, Commerce and Industry Minister Piyush Goyal on January 21 while addressing captains of IT industry said that focus is now on simplification of tax procedures, self-certification and self-regulation within the realm of law. “We have the budget coming up soon and all of us are anxiously waiting to see and hear what is done with some of the asks that Nasscom also had put before us,” he said while speaking at the launch of industry body’s Annual Technology Start-up Report. As per the central government, almost 25,000-26,500 plus compliances have either been simplified, digitalised or completely removed from the statute. “We have been able to decriminalise almost 770 offences or requirements of law. But we are open to your ideas. I have been on many occasions urging all of you to tell us, share with us what could be a better way of running the entire legal framework. What more compliances you think we can either eliminate, simplify or digitise,” Goyal told the participants. “What can move to self-certification, what kind of self-regulation mechanisms you can draw up and the strength of the IT sector, and I have said it on more occasions than one, has been that you were independent. Government was not involved in most of your activities and I do think start-up eco-system we would like to see in the same lengths and give as much as freedom of operations within the realm of law, within the fact that you will self-regulate honestly and fairly and in a balanced manner so that everybody gets equal opportunity,” he further said. While both Centre and states have removed a host of regulatory hurdles to boost manufacturing and start-up ecosystem in the country, industry is looking for more measures. Speaking to UNI, Jindal Stainless Managing Director (MD) Abhyuday Jindal recently said that while ease of doing business has significantly improved for services sector it is yet to reach desired level for the manufacturing sector. He said that given the high cost of regulations he would prefer to expand capacity through acquisition route than going for a greenfield project. Small and medium enterprises have also urged the government to further ease the compliance burden. “Regulations pertaining to labour laws, intellectual property rights, dispute resolution, etc. are rigorous in India. Hence, there need to be fewer and easy regulations that genuinely ensure ease of doing businesses for young companies,” India SME Forum has said in its pre-budget recommendations to Finance Ministry. 

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