Quotes from Startups on Union Budget 2016-17

Comments from Mr. Sandeep Agrawal, Founder & CEO, Droom

This budget is far from the reforms expected. In the startup ecosystem, entrepreneurs and emerging businesses were hoping for some exciting announcement to encourage entrepreneurism and innovations.  However, the silver lining was the announcement for women and SC/ST entrepreneur with Rs. 500 crore allotments. As an entrepreneur, I was hoping that govt will include following topics:

  • Capital for entrepreneurs should be more accessible and cheaper
  • Some tax benefits for start-up in terms of capital gain and dividend taxes
  • Offering R&D credits and lower costs for innovations

Anish Basu Roy, Co-founder & Chief Enabling Officer, Shotang said

“I think the various tax holidays and exemptions announced today for startups are a step in the right direction. However, clarity is still awaited on the amendments to the Companies Act which are much needed. Ease of doing business as a startup in India needs to go up considerably, especially in areas such as statutory compliances, raising capital and accounts & audit.”

Mr Neeraj Jain, CEO &Co-founder, Zopper said

“I think overall budget is very good. Finance minister has tried to balance short and long term objectives. The govt has sent a very good message by promoting women entrepreneurship. It is also serious about ‘Skilling India’ which again is a core requirement to have a flourishing startup ecosystem in the country.”

Soumitra Gupta, CEO, Togofogo said

“We appreciate the Finance Minister’s move on Tax holiday for startups as every startup takes minimum three of five years to setting up the company. We welcome the effort by Indian government for startup industry. It will give a strategic boost to the current ratio of Indian entrepreneurs and will support the Startup India campaign by Modi Government.”

Comments by Mr. Vineet Singh, Co-founder & CEO of Buildzar said

“The B2C Housing Construction is the second largest employment generator in the country after agriculture, and contributes ~ 8% to the GDP. The $150 bn sector remains marred with issues of supply chain leakages, wastages, shortage of skilled and semi-skilled workforce, tax evasion etc. Surprisingly, despite these ‘opportunities’, it is the most neglected sector in terms of emerging entrepreneurs trying to solve these problems for the manufacturers and consumers.

The Union Budget met several expectations in terms of making housing more affordable to a vast segment by Exemptions on housing loan interest for first time home buyers, exemption from service tax on construction of affordable houses up to 60 square meters, and exemption in excise duty to Ready Mix Concrete. The enhanced investment in infrastructure will help us in reaching to wider consumer base in housing which is unserviceable today. We are happy that the FM went took a step further in the direction shown at startupindia and announced Tax holiday for startups for setting up the business.

There were some disappointments as well, particularly of indirect taxation. Our sector has to grapple with various taxes like VAT/WCT, CST, excise, and service taxes. A uniform approach for tax laws and regulatory policies would have helped. GST implementation should be taken up in a time bound manner.”

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