Paint makers seek demand revival move in Budget 2020
Paint makers are seeking the Centre’s move to improve consumer sentiments and boost demand in the forthcoming Union budget, instead of any consideration of further tax cut for the sector.
Initially, a 28 per cent GST was levied on paints, but with demand from the industry, the government had brought down the rate by 10 per cent to 18 per cent in July 2018.
“With the economy having slowed down over the last one year, the government should take steps to improve consumer sentiments and boost demand through tax incentives and increased spending in the infrastructure sector,” Berger Paints managing director and CEO Abhijit Roy said in his pre- budget wish.
Country’s largest paint maker Asian Paint’s Chief Operating Officer Amit Syngle said it is always “good if there is a tax cut” but the industry is “not hopeful of such a step” from the government.
“The government should enable consumers to spend more. It can come through tax breaks and any other forms,” Syngle said.
Roy emphasised on the need for consumer sentiments rather than seeking Goods and Services Tax cut from 18 per cent now.
“As a next step to the reduction of the corporate tax rates, we hope for the rationalisation of the direct tax code which would put more disposable money in the pocket of the tax payers. This will help enhancing consumer sentiments, higher consumption and an overall positive multiplier effect on the economy, Roy said echoing Syngle.
Roy also sought incentives for individuals to invest in housing and realty sector through more tax benefits.