Budget 2009: A submissive first step to reforms say finance heads of Indian industry as per PricewaterhouseCoopers Opinion Poll

BANGALORE, 8 July 2009: After much has been debated on the Union Budget 2009, PricewaterhouseCoopers conducted an opinion poll to see whether the budget actually met people’s expectations. The opinion poll conducted in Delhi, Mumbai and Bangalore on 6 July 2009 reveals that Budget 2009 has fairly met corporate India’s expectations from the new government. The poll reflects the responses of people who attended the PricewaterhouseCoopers Budget Analysis seminars, including chairmen, chief executives, managing directors, chief operating officers, financial directors, chief financial officers and non-executive directors from some of India’s largest businesses.

Dinesh Kanabar, leader tax practice, PricewaterhouseCoopers, said, “The second UPA Government had a three-pronged plan of action at this juncture: putting the economy back on track towards achieving a growth rate of 9% of GDP, ensuring inclusive development and re-energising government machinery to provide high quality public service, security and rule of law. Budget 2009 reflects a modest first step in that direction”.

Key findings of the PricewaterhouseCoopers Opinion Poll:

· There seems to be a lopsided view among the industry leaders that Budget 2009 could perhaps have outlined stronger steps to attain the projected growth rate of 9%

· Budget 2009 has reaffirmed the commitment to roll out Goods and Services Tax (GST) as per schedule of 1 April 2010 but this seems to be a somewhat ambitious target

· People are not in favour of taxing employee stock ownership plans (ESOPs) at the time of exercise

· Overall, industry captains had mixed views on whether Budget 2009 had laid out a clear path towards making the direct tax administration efficient