The Finance Minister Nirmala Sitharaman announced several measures to decrease the burden on the private sector, including removing the controversial surcharge on Foreign Portfolio Investors (FPIs).
“In order to encourage investment in the capital market, it has been decided to withdraw the enhanced surcharge levied by the Finance Act (No 2) Act 2019 on long- and short-term capital gains arising from the transfer of equity shares,” she said. “In other words, the enhanced surcharge on FPIs goes and the pre-Budget position is restored.”
“We respect wealth creators. That is the spirit with which the budget was presented and why we invited different sectors of the economy to speak with us. These were in-depth consultations.”
Minister Sitharaman also said that the government will no longer treat corporate social responsibility violations as criminal offences. She added that the government was in favour of penalties rather than prosecution.
“The notion is being disproved that this government is inclined to go through prosecution; we are more in favour of penalty than prosecution where possible; we have withdrawn 14,000 prosecutions under Companies Act.”
“Indian GDP growth continues high above other countries; consumption growth is down in not just emerging but also advanced economies; volatile situation has developed in global trade.”
“Our government has kept reform at the top of our agenda, since 2014. We are maintaining the reform momentum, be it regarding self-certification or labour reforms or environmental clearance.”