Budget 2022: Start up company demands relaxation of tax burden on the sector

The Union Budget 2022 is expected to release on 1 February by the Finance Nirmala Sitharaman. The last year's budget was based on health and rural infrastructure development but this year it is assumed that the budget will be more toward the economy of the country as the coronavirus surge. It is also said that the Finance minister will especially look after work from home employees and give special benefits to them, she will also not disappoint the tax givers this year. 

On the same note Sanya Goel, Co-founder of Humsafar Diesel Door Delivery startup, urged the government to relax the tax burden on the sector which are already facing losses due to the Covid-19 surge. 

"The industry has suffered very badly because of ad valorem taxes on petrol and diesel as crude prices have climbed up in the last couple of years. It was a double whammy as it created pressure on demand and margin for Petrol pump Dealers and cost pressure on customers at large. It needs to be reversed immediately," said,  Co-founder of Humsafar Diesel Door Delivery

 “The Indian startup ecosystem skyrocketed in 2021 to become the third-largest globally with 78 unicorns, 8 IPOs and a 3x increase in total funding over last year to touch $39 billion. However, despite a stellar show, two challenges are predominant in the Indian startup space; (1) many unicorns in India lack a compelling revenue base and require an infusion of cash flow for survival (2) the need to accelerate their digital transformation with technology and platforms. Hence, in 2022, the government should look at assisting startups through policies and support mechanisms towards domestic capital participation, favourable investment climate in tier 2 and tier 3 cities, incentives to set up incubators in every state, tax exemptions in foreign direct investments, and a high focus on startup infrastructure development. This will also help in the globalisation of Indian startups as ~42% of them are planning to go global in 2022" she added.