Market Bullish On Tax Reforms Ahead Of Budget 2020: UBS India Economist
The market is expecting tax reforms, including a cut in the long-term capital gains tax, ahead of the Union Budget 2020-21 on Saturday, according to Tanvee Gupta Jain, chief India economist at UBS Group AG.
“For equity investors, I think the LTCG tax dilution is something a lot of market players are pricing in,” Jain told BloombergQuint in an interview. “A lot of expectation has built in for income tax rationalisation.”
Finance Minister Nirmala Sitharaman, who will present the budget tomorrow, effected a corporate tax rate cut in September 2019 in an attempt to stimulate growth in the Indian economy.
“We are seeing that the growth has slowed to more than a decade’s low,” Gupta said, adding that government spending in the quarter ended September was up almost 25 percent year-on-year. “At this point of time, market hopes are high that the budget will be a game-changer.”