Rationalising corporate tax structure key in Budget: Deutsche

Abhay Laijawala of Deutsche Bank says he expects FY18 Budget to be centered around a sharp pro-poor/pro-rural focus in an attempt to mitigate the perceived hardships of demonetisation and stimulate demand.

According to him, Budget is likely to focus disproportionately on affordable housing as an engine of economic revival.

Further announcements on roadmap for rationalising the corporate tax architecture by lowering the tax rate and phasing out exemptions are expected, he says.

Tax on financial market transactions and an overhaul of direct taxation by reducing tax incidence for the middle class, likely financed through a mix of tax on financial instruments and higher tax rate at the upper end of the income pyramid can be expected, Laijawala feels.