Union Budget 2016: Expectations Of Startups In Logistics Sector | SupportBiz

Finance Forum

Union Budget 2016: Expectations Of Startups In Logistics Sector

 
Easy access to capital and reduced bureaucracy are some of the expectations

After Prime Minister Narendra Modi’s ‘StartUp India Campaign',  Indian entrepreneurs in the logistics sector have set new expectations from the Union Budget slated for February-end.

They believe the Modi government will push reforms and policies to bring stability in the sector and maximize growth.

The entrepreneurs of the transport-logistics sector are expecting that the government should focus its attention on making the sector more competitive and connective to the common man. We spoke to a couple of start-ups in the transport sector.

Here is what they expect from finance minister Arun Jaitley's Budget 2016.

Akhil Gupta, CEO & Founder, Bumper

A start-up friendly tax regime, minimum interference, easy access to capital and reduced bureaucracy are some of the key factors that can drive the startups into the new era of entrepreneurship. The government should ease the qualification of Angel money, often the lifeline for entrepreneurs. Tax breaks and incentivisation to individual investors will be a welcome move. Waiving off service tax for a period of 3 years will give a huge relief to Bootstrapping startups. Scrapping unnecessary paperwork and a fast track documentation process will help save precious time of an entrepreneur, allowing him to expend his energies on the right things.

Incentivising and giving tax breaks to early stage startups will pave way for a new breed of fearless entrepreneurs. Angel investors should be incentivised and given a tax benefit. By providing a waiver on service tax for 3 years, they can help a startup in their capital requirements. The 2016 budget will be the one keenly followed by the startup community and we can only hope it ushers in a new era of entrepreneurship.

Greg Moran, Co-founder & CEO, Zoom car

We are hoping to see increased funds allocated for smart city initiatives thereby helping startups in this space.

Lokesh Bevara, CEO & Co-founder, 360Ride

Keeping the positives of the "Startup action plan", I strongly feel the government should allocate a decent amount of budget for startups. The fund which will be allocated should vary from startup to startup based on the stage in which they are in. Early stage startups need more support with the fund. The funds which are allocated should reach startups on time and the process should be clear and transparent. In ride sharing industry, rules should be revised in such a way that sharing a seat even in commercial format should be allowed. Any rule can become an old rule if it is not helping any startups/enterprises in solving the real world problems.

Pushkar Singh, Founder, LetsTransport

Further, to the announcement of the "Start-up India Initiative" recently, the startup environment in India has become a lot more favourable. As an entrepreneur, I would suggest simplification of statutory compliances and procedures. The removal of direct and indirect taxes would also enable faster growth of companies. Investments in early stage start-ups involve risk and therefore it is important to set reasonable baseline tax rates for investors, to attract more funding at reasonable terms."

Suman Howlader, CEO & Founder, CarZippi

As a start-up our expectation is to have a startup-friendly tax structure for new ventures i.e. slab based tax structure and Service Tax exemption ceiling to be increased. Apart from that we are looking forward for flexibility to decide on the contributing amounts in the areas of provident fund and ESI both for employees and employers. If organizations are allowed to choose ESI vs other health plans, it will be a boon for the startups as they can choose options based on budget and available funds.After Prime Minister Narendra Modi’s ‘StartUp India Campaign',  Indian entrepreneurs in the logistics sector have set new expectations from the Union Budget slated for February-end.

Akhil Gupta, CEO & Founder, Bumper: "A start-up friendly tax regime, minimum interference, easy access to capital and reduced bureaucracy are some of the key factors that can drive the startups into the new era of entrepreneurship. The government should ease the qualification of Angel money, often the lifeline for entrepreneurs. Tax breaks and incentivisation to individual investors will be a welcome move. Waiving off service tax for a period of 3 years will give a huge relief to Bootstrapping startups. Scrapping unnecessary paperwork and a fast track documentation process will help save precious time of an entrepreneur, allowing him to expend his energies on the right things.

Incentivising and giving tax breaks to early stage startups will pave way for a new breed of fearless entrepreneurs. Angel investors should be incentivised and given a tax benefit. By providing a waiver on service tax for 3 years, they can help a startup in their capital requirements. The 2016 budget will be the one keenly followed by the startup community and we can only hope it ushers in a new era of entrepreneurship."