Budget 2019 expectations: Increase digital transactions in smaller cities, bring big bang reforms in insurance sector

Budget 2019 expectations: We are exactly a week away from Budget 2019 presentation by Finance Minister Nirmala Sitharaman and all sectors have major expectations, with this being the first budget of the newly elected Modi government. Praveen Dhabhai, COO, Payworld believes that the government should take steps to increase digital transactions in smaller cities and hopes that the there is a reduction in GST for remittances where margin are wafer thin.

"We are really optimistic about the upcoming Budget 2019, as we expect the Modi 2.0 to think towards the reduction in GST for remittances where margin are wafer thin and is targeted towards financial inclusion. The current GST rates, is levying a huge burden on the end consumers. The key announcements will be aimed at reducing tax burden for the middle class, encourage digital transactions, the exemption of TDS for retailers doing remittance and MSME segment. The government should take adequate steps to be taken to increase digital transactions in smaller cities and rural areas," he said. 

Meanwhile, Subhash Nagpal - CEO and Founder, Comparepolicy.com hopes for some big bang reforms in the insurance sector like creating a provision for making pension from life insurance products tax-free, and also provide tax exemption for life insurance pension plans under special sections. 

"The sector also requires a separate tax exemption for pure protection life insurance policies. Most importantly, there is an urgent need to increase FDI limit in insurance and insurance intermediaries," he said. 

"We also believe that the government needs to shed more light on the Ayushman Bharat scheme and also enlist processes to fund and operate it better. There is also the need to link Home Insurance to Home Loans so that losses to property arising out of catastrophe can also be covered. When it comes to corporates, employee health insurance should be made mandatory across industries and sectors," Nagpal added.