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Tax changes in the Budget unlikely
February, 17th 2010

What is your view on taxes in the coming Budget?

We do not believe there would be tax changes in this budget. It does not make sense when just a year hence you have the GST and the direct tax code coming in. More importantly one should focus on banks recapitalisation because if you are talking of a higher growth number, you have to look at who will lend.

If you have to look at lending buoyancy in terms of 25-26%, which means a lot of these PSU banks have to be recapitalised, so those are the two things we are looking at, the lower government borrowing, bank recapitalisation. We do not believe there would be any changes in duties.

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