After the finalization of budget 2015-16, LightCastle Partners – a business data firm that works at the intersection of market data and company specifics – conducted a perception survey on entrepreneurs’ views on budget using their proprietary online survey platform – LightCastle Data. Respondents have been carefully chosen from diverse sectors with special emphasis on those entrepreneurs operating in the digital space.
In general, entrepreneurs were indifferent (52.6%) about budget outcomes with some complaining about VAT imposition on the e-commerce sector. However, the withdrawal of the proposed VAT has contributed to relief on the part of e-commerce entrepreneurs.
Education is the most preferred sector for additional budget allocation followed by Transport infrastructure and Power. In general, entrepreneurs recognized the importance of investments in education for contributing to human capital as well as the potential for growth wrought about by greater connectivity and power availability.
The majority of entrepreneurs are indifferent (52%) to taxation structure while a significant portion is dissatisfied (42%). Indifference signifies positivity here as the government endeavored to reduce the tax burden on companies, especially those willing to enlist in the local stock exchange. The government’s withdrawal of some VAT and taxes in the finalized budget lessened dissatisfaction among respondents.
Respondents believe the IT & Ecommerce sector requires proper budgetary support followed by Agro-processing and transportation sectors. Entrepreneurs, in general, are doubtful about the government’s ability to implement the budget as the majority were doubtful (63%). Lack of confidence is probably due to a slower ADP implementation track record which has hovered around 60-65% level and slow implementation of flagship infrastructure projects e.g. Padma Bridge.
The enclosed infographic summarizes the survey findings, shedding light on entrepreneurs’ feedback.
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