• Notification Date: 31-01-2023
• Notification No: N/A

73% Taxpayers demand Reduction in Prices, 54% GST Exemption of Essential Items in Budget 2023

Sixteen percent taxpayers believe that inflation and upcoming 2024 elections will have a strong effect on the economy this year. Besides, 14 percent believe that government policies and 11 percent think Russia-Ukraine war shall remain the top concerns. 

Around 73 percent people believe that the upcoming Union Budget 2023 needs to address matters like reduction in prices of essential items like soap, detergent, cooking oil etc. While, 54 percent believe that the government should look into the GST exemption of essential items. These findings were part of the Axis My India Pre-Budget CSI Survey.  

The consumer sentiment index also found that 44 percent want a reduction in GST and 32 percent want housing loan exemption limits to be re-looked at. The survey also highlighted that 26 percent believe that personal income tax rates should be decreased by 5 percent. Moreover, 25 percent taxpayers want the exemption limit to be raised beyond Rs 2.5 lakh. 

According to the survey, better banking network (32 percent), better spread of telecom connectivity and 5G (19 percent) and better internet security (18 percent) are considered important pillars of digitisation.  

Pradeep Gupta, Chairman & MD, Axis My India, said, “Consumers are looking forward to the upcoming budget announcements as a ray of hope for better life and livelihood and there is a huge expectation in terms of price control. Consumers are also looking forward towards various measures that the government will take towards fuelling digitization in the Indian economy. Overall, despite global headwinds the Indian economy should be poised for further growth in 2023”. 

Around 22 percent consider oil prices to significantly impact the Indian economy. The CSI survey found that overall household spending has increased for 59 percent families by 4 percent compared to last month. Spending on essential, personal care and household items has increased by 40 percent, which is a dip of 1 percent from last month.  

Spending on non-essential and discretionary products such as AC, car and refrigerator has increased for 5 percent of families, which is a decrease of 2 percent from last month. Sentiment towards discretionary spends was the lowest percentage hike in the last four months. 

Expenses towards health-related items increased for 33 percent of the families, which reflects a decrease in consumption by 6 percent. It must be pointed out that the lesser the spends on health items, the better the sentiments. Sentiment towards health spends was the lowest percentage increase in the last four months. 

Consumption of media such as TV, Internet, radio etc. increased for 20 percent of the families, which is a dip of 1 percent from last four months. Mobility has increased for 9 percent of the families, which is an increase of 2 percent from last month. The survey took into account responses of 6,100 people across 27 states and UTs, out of which 65 per cent belonged to rural areas and 35 per cent to urban areas.