The Union Budget 2022-23 should introduce additional startup-friendly policies and tax relaxations to enable spending on innovation, ease-of-doing business and reducing compliance costs, various homegrown startups said.
Startups added that new reforms, policy assistance and support mechanisms for establishing a focused approach in solving unmet financial needs through technology will significantly benefit the economy.
"We have seen a substantial spike in the adoption of digital payments in the last one year. I'm hoping that in the upcoming Budget, the government will think of alternatives to the Zero MDR (merchant discount rate) policy," stated Harshil Mathur, CEO and Co-founder, Razorpay.
Finance Minister Nirmala Sitharaman had announced Rs. 1,500 crore to further accelerate digital payments' growth in the country.
Mathur added that it would also be desirable for the government to increase contribution to the Fund of Funds for Startups (FFS).
To incentivise startups, the government had last year extended the eligibility for claiming tax holidays for startups by a year to March 31, 2022.
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