In just two weeks from now, all eyes will be on Finance Minster Pranab Mukherjee, when he presents the Union Budget in Parliament. And, just as the corporate world and industry associations present their litany of demands to the FM, the Gen-Next, too, is looking for a few goodies.
Karan Kapur, 27, director, United Overseas HR, and a resident of New Delhi, says his expectations from the Budget remain more or less the same as last year. It comes as no surprise that the chief demand presiding on the wish list of the young and the salaried is the extension of tax slabs, owing to the rising cost of living.
"Though government has, over the previous years, done well to gradually extend tax brackets for the salaried, I believe a little more can be done, considering inflation has not completely subsided yet. The savings, as a result of the extra liquidity in the hands of the people, can be used by them to stave off the effects of inflation," says Kapur.
At present, no tax is charged on a net income of Rs 1.8 lakh for men and Rs 1.9 lakh for women. For an income of up to Rs 5 lakh, the tax rate is 10 per cent; for an income more than Rs 5 lakh but less than Rs 8 lakh it is 20 per cent and 30 per cent for more than Rs 8 lakh.
Other than extending the tax brackets, the young are looking at lowering taxes on items they would love to splurge on. Tax reduction on gadgets and travel is hoped for.
Nishant Thakur, a 31-year-old business development manager with Kohler in Mumbai, covets announcements regarding reduction in taxes and excise duties on necessaries — and gadgets as well. "I pray they do not hike the Value-Added Tax on electronic items. These are my regular buys," says a worried Thakur.
Younger women, such as Archana Kumar, wedding photographer, Studio Velvetta, Bangalore, want no further increase in the excise duty on branded jewellery. Also, a stable import duty on gold is wished for. She is also counting on a reduction of taxes on domestic airfare, as she flies frequently. "Abolition of service tax on internet and broadband services is expected. I hope they implement this with regard to the telecom services as well," adds she.
Thakur, on the other hand, drives to work every day, and is expecting some relief in fuel prices. The prices of petrol have risen more than 16 per cent in the last one year and of diesel by 12 per cent. This has led to the ballooning of fuel bills for the likes of Thakur.
He is also keeping an eye out for any increase in excise duty on diesel cars. "The government is considering raising it. This could mean only one thing: Diesel cars getting pricier. Demand could thus get affected, leading possibly to a further increase in the price of diesel itself," he rues.
Education and employment are also on the minds of the young. Kapur anticipates a slew of measures aimed at students, for making it easier to pursue studies at both primary and higher education levels. "Education loans need to be more accessible and interest rates should come down to facilitate easier repayment. This will ensure the setting up of foreign universities brings quality education to all," says he.
As for the employment scenario, Thakur feels more development and business-friendly tax sops would paint a pretty picture.