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Budget 2021: Sanitaryware industry seeks tax rationalisation to boost demand
`A push for the revival of the economy is the key expectation from the Union Budget 2021. From an affordable housing perspective, corrective measures, which can ease out the liquidity challenges and improve home buying sentiments, will be critical,` Jaquar Group promoter and director Rajesh Mehra said.
Highlights
- The sanitaryware industry is seeking rationalisation of tax rates on bathroom fittings.
- Union budget should pave the way for the GST Council to consider a reduction of Goods and Services Tax rate to five per cent.
- Currently, the GST for sanitaryware is at 18 per cent.
The sanitaryware industry is seeking rationalisation of tax rates on bathroom fittings and a slew of steps from the Centre to boost demand for such products, officials said on Thursday.
With rising infrastructure spending, sops for industries for cost-effective production, an increase in disposable income through tax cuts can be helpful to put the country's GDP back on the 8-per cent growth track in the next fiscal, an official of a leading sanitaryware maker said.
"The government needs to focus more on the demand side. Apart from the government's expenditure, the Centre should boost the consumer spending by extending sops," Roca Bathroom Products managing director KE Ranganathan told PTI.
He also said the upcoming Union budget should pave the way for the GST Council to consider a reduction of Goods and Services Tax rate to five per cent to push demand and boost 'Swachh Bharat' mission.
"A push for the revival of the economy is the key expectation from the Union Budget 2021. From an affordable housing perspective, corrective measures, which can ease out the liquidity challenges and improve home buying sentiments, will be critical," Jaquar Group promoter and director Rajesh Mehra said.
The GST for sanitaryware is at 18 per cent, and a reduction of the rate will help increase demand, he added.