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Tax Relief Fuels Growth in THESE Sectors | Check Here

Tax relief measures are expected to boost disposable income, benefiting sectors like restaurants, beverages, travel, and entertainment. The middle class is expected to increase spending, leading to higher footfalls in malls and restaurants.

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Tax Relief Fuels Growth in THESE Sectors | Check Here

Restaurant, cinema, travel, and beverage industries are optimistic about the future, thanks to recent tax reliefs that will boost disposable incomes. Sagar Daryani, president of the National Restaurant Association of India and co-founder of Wow! Momo, highlighted how the restaurant sector, which had seen declining footfalls in the past year, is now expecting increased traffic as middle-class consumers have more disposable income. “With the higher tax exemption limit and general tax reliefs, we would see more of the middle class dining out. With increased footfalls across malls and restaurants, profitability of businesses will improve, spurring job creation,” Daryani stated.

However, Daryani noted that the restaurant industry has yet to be given the facility of input tax credit, which he feels would help reduce the mortality rate within the industry. “Much needed to reduce the high mortality rate in the industry-over 50% of restaurants shut down within the first 24 months,” he added.

In the spirits business, Radico Khaitan’s chief operating officer, Amar Sinha said, “Boosting discretionary spending is a good sign.” According to him, “as disposable incomes increase, consumers are more willing to treat themselves to premium experiences, thereby fuelling a demand boom for quality products”.

The travel industry is also poised to benefit from tax relief and the expanded regional connectivity under the UDAN scheme. According to Mohak Nahta, founder and CEO of e-visa startup Atlys, an increase in LRS (liberalised remittance scheme) limit and other measures will provide a good setting for growth. “These, all together with the increased LRS limit, create a perfect storm for the travel industry,” stated Nahta.

In the entertainment sector, the optimism of the cinema operators lies in increased consumer spending. As PVR Inox CEO Pramod Arora said: “The tax relief measures will increase consumer spending, especially in cinemas and other businesses that require mid-level discretionary spending, such as domestic travel.” This, according to managing director of Cinepolis India, Devang Sampat, will mean that much more money reaches our movie-loving audiences directly, and that’s something we’re really excited about. More disposable income would definitely translate into having families and friends share in the magic of big screens.

Kalyan Krishnamurthy, CEO of Flipkart Group, said that the relief for the middle class in terms of tax relief and streamlined TDS/TCS norms will enhance the purchasing power and access to quality products among consumers. “The strong push for local manufacturing puts more power in the hands of consumers, boosting their purchasing capacity,” Krishnamurthy explained.

Finally, Shriti Malhotra, executive chairman of Quest Retail – The Body Shop, appreciated the rise in the income tax exemption limit to Rs 12 lakh. According to her, this change is one of the crucial steps to increase urban consumption by giving middle-class families greater flexibility and spending power. “This is a decisive step toward boosting urban consumption,” Malhotra said, adding that the move will benefit spending.

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Tax Relief