Staff Reporter
Panaji
Goa Inc. reacted positively to the Budget 2025-26 for its focus on simplified taxation and a new Income Tax Bill that is expected to ease compliance and a proposal to decriminalise breaking of tax laws.
Members of industry said that they are looking at the Budget to benefit Goa in many ways, for instance, the interest-free loan for capital projects wherein state governments can access a 50-year loan of up to Rs 1.5 crore for capital projects. The extension on the rental TDS limit to Rs 6 lakh will provide relief to many Goans who earn rental income, they said.
Other initiatives that have the potential to be advantageous to the state are a Grameen Credit Score by public sector banks to serve the credit needs of Self Help Group (SHG) members and people in rural areas.
The GCCI said that the increased threshold for tax deducted at source (TDS) and tax collected at source will reduce the compliance burden. Further, measures to reduce litigation and boost MSMEs by way of finance and innovations are also appreciated. “The Budget initiatives on agriculture, fisheries, higher credit guarantee cover for MSMEs, renewable energy, and higher funds for maritime development for sure will help Goa,” said GCCI vice president, Pratima Dhond.
With the state having a well-established shipping industry, the CII Goa believes that the proposal to extend duty exemptions on raw materials for shipbuilding for the next 10 years is a welcome move that will provide a major impetus to the maritime and manufacturing industries in the state.
“The income tax cut will boost consumption and kick off a virtuous economic cycle by increasing production,” said chairman, CII western region, Swati Salgaocar.
According to the CII, the Budget will strengthen Goa’s key sectors, including tourism, hospitality, shipbuilding, and MSMEs, ultimately contributing to sustainable economic growth and employment generation.
“Goan agriculture being in the low productivity category will be supported to a large extent by the Prime Minister Dhan-Dhaanya Krishi Yojana scheme for developing agri-districts program,” said ASSOCHAM Goa, chairman Manguirish Raikar. He said that the Dhan-Dhaanya scheme will cover 100 districts with low productivity, moderate crop intensity, and below-average credit parameters. “The scheme will benefit 1.7 crore farmers, and Goan farmers must be included under it,” said Raikar.
The proposal of no income tax up to an income of Rs 12 lakh for individuals (under the new regime) got the thumbs up from all members of the industry. However, chartered accountants cautioned that the exact implications of the exemption would be clear once the Income Tax bill is presented next week.
