Quote on Union Budget Expectation by Smita Shetty Kapoor, CEO & Co-Founder, Kelp
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Below the Quote on Union Budget Expectation by Smita Shetty Kapoor, CEO & Co-Founder, Kelp
* Tax Reductions on Employment Services: Lowering the GST on employment services from 18% to 5% could create more jobs and increase youth employment, bringing more workers into the formal economy and providing them with essential benefits like Provident Fund (PF) and Employees' State Insurance (ESI).
* Streamlining PF Contributions: Reducing the monthly PF contribution from 12% to 5% would increase employees' disposable income, alleviating some financial pressures amidst rising inflation and living costs.
* Delayed Remittance Clause: Considering the waiver of penalties for delayed statutory payments due to delays from the principal employer would greatly benefit staffing service providers, ensuring smoother operations and compliance.
* Enhancing Disposable Income: Significant tax relief for the middle class, including reassessing House Rent Allowance (HRA) to reflect current rental trends, increasing standard deductions, and enhancing exemptions under sections like 80C, 80D, and 80EEA, would provide much-needed financial relief.
* Investment in Skill Development: The government should increase investment in skill development programs, especially in sectors facing a talent shortage, such as manufacturing and logistics. This would ensure a ready-to-deploy workforce and support economic growth.
* Support for ESOPs: For start-ups, ESOPs are crucial for attracting and retaining talent. We recommend that these should not be taxed upon exercise, but rather on the final sale of shares, making them a more viable incentive for employees.
* Policy Support for Diversity and Inclusion: Continued focus on diversity, equity, and inclusion initiatives is essential. Policies that promote safe and respectful workplaces and support for PoSH compliance are critical for creating a positive work environment.
* Strengthening the Employee Assistance Program (EAP): Enhancing the EAP to support employees' mental and emotional well-being will be vital in fostering a holistic and supportive work culture. Integrating national mental health initiatives by the Government of India to reduce the stigma around mental health is crucial in fostering a more inclusive and supportive work culture.
* Encourage participation of women in the workforce with a non taxable childcare allowance."
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