Kolkata: Although the government failed to lay down a concrete roadmap on ways to reduce the huge fiscal deficit in the Union Budget 2009-10, the changes made in the tax structure, both direct and indirect taxes, were a welcome measure and could have a positive impact on the economy, felt industry experts.

Speaking on the sidelines of a budget analysis session organised by Confederation of Indian Industry, Rohan K Phatarphekar, executive director and national head, global transfer pricing services KPMG India Private Limited said, “The Budget was not bad, there was too much of expectations from the market. What the Budget lacked was clarity, the government failed to lay down a concrete roadmap to bridge the fiscal deficit." But significant changes were announced in the tax structure like removal of FBT, removal of 10 per cent surcharge on the higher bracket of income tax, commitment to introducing GST.”

Of all the amendments, transfer pricing which sometimes becomes a huge burden to companies will definitely have a positive impact, he added.

Source: Business Standard

Pranab Budget 2009: Proposals, analysis & reactions