100-Word Take | On the Budget and tax changes

The government will present an interim budget this year, as elections are around the corner. Some investors believe that this makes the budget a non-event since no tax changes are expected. This may hold true for direct taxes and custom duties. But after the Goods and Services Tax was introduced, it’s the GST Council that decides tax rates. It may well tweak rates around the time the budget is presented. Therefore, investors who track tax rates and their impact on sectors should continue to watch out for decisions on rates around the time the budget is presented.