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TaxTMI 
Budget answers expectations, raises questions for Gulf NRI businesses
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....udget answers expectations, raises questions for Gulf NRI businesses<BR>Budget<BR>Dated:- 1-2-2025<BR>PTI<BR>Dubai, Feb 1 (PTI) Some provisions in the union budget presented on Saturday brought good news for businesses run by NRIs in the Gulf region while some questions remain unanswered. Bhavesh Talreja, Founder and CEO, Globale Media said the Union Budget 2025 presents both opportunities and c....
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....hallenges for the marketing and advertising industry, with potential ripple effects on the Gulf region, given the strong economic and trade ties between India and GCC nations. “The government's focus on increasing disposable income through revised tax structures is expected to boost consumer spending, which could lead to higher marketing and advertising investments by Indian brands, many of wh....
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....ich have a significant presence in the Gulf,” he said. However, according to Talrja, the lack of a reduction in the 18 per cent GST on advertising services remains a missed opportunity, particularly for SMEs and digital-first brands that rely on cross-border marketing efforts. “A tax revision could have further encouraged Indian companies to expand their advertising reach, benefiting Gulf-....
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....based digital platforms and media outlets,” he said. Talreja also said the budget’s emphasis on digital infrastructure, AI innovation, and 5G expansion is a welcome move as these advancements will likely accelerate ad tech, programmatic advertising, and AI-driven marketing solutions. “This is particularly relevant for Gulf-based media, e-commerce, and fintech sectors, where Indian techno....
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....logy and marketing firms are actively engaged. Additionally, the ?9,000 crore Credit Guarantee Scheme for MSMEs will support Indian startups, many of which are expanding into the GCC, fostering stronger collaborations between Indian and Gulf-based ad tech and marketing firms.” Furthermore, India's increased focus on manufacturing, exports, and digital commerce is expected to enhance bilateral ....
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....trade, leading to higher cross-border advertising investments and brand collaborations between Indian and Gulf businesses. “As more Indian brands enter the Gulf market, sectors like retail, e-commerce, fintech, and travel will witness increased ad spending on GCC-based digital and media platforms, strengthening regional industry ties,” said Talreja. “While the budget sets a strong founda....
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....tion for digital transformation, economic expansion, and entrepreneurship, a more inclusive approach towards easing tax burdens on advertising could have amplified industry growth. Nevertheless, the push for AI-driven innovation, cross-border trade, and startup expansion will further strengthen India-Gulf marketing and advertising synergies, making the region a key player in the evolving global di....
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....gital economy." Chandrashekhar Bhatia, Chairman GBF Middle East UAE, hoped the new healthcare bill would be simple and easy to understand as it is focused on citizens above the age of 80 being exempted from tax. “Till now, income up to Rs 12.75 lakh is tax-free. Apart from this, the facility of renewal return will be given for 4 years, which will give relief to taxpayers till the time limit.....
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.... In this bill, punishment will be given instead of justice,” Bhatia said. He welcomed the finance minister’s scheme in the field of exports, and the help for MSMEs in tariffs abroad. “But, still no good news for NRI and NRI investment,” he lamented. Kamal Vachani, Group Director and Partner, of Al Maya Group, and Regional Director, of the Electronics and Computer Software Export Promot....
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....ion Council (ESC), welcomed the budget proposals to boost agricultural productivity through crop diversification, sustainable farming practices, enhancing post-harvest storage at the Panchayat and block levels. “The plan to establish a specialised Makhana Board is a welcome move with the potential to elevate the Makhana industry and empower farmers in this field,” he said. He also said the....
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.... full tax exemption for income up to 12 lakhs is a major step, which will benefit middle-income taxpayers in a big way. “It could lead to increased financial stability for a large portion of the population, particularly those in the middle-income brackets,” Vachani added. According to Vachani, the government's move to increase investment and turnover limits for MSMEs is a promising initiativ....
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....e. “The plan to simplify the KYC process with a revamped central KYC registry set to roll out in 2025 sounds like a positive and timely move,” he said. In the build-up to the budget speech, Dr. Sahitya Chaturvedi, Secretary General, of the Dubai-based Indian Business Professional Council (IBPC) said he foresaw a potential increase in GST or the introduction of additional charges through serv....
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....ice levies or surcharges, which could place an additional burden on consumers. “In terms of income tax, there is hope for relief, particularly for the middle class, with possible reductions in tax rates. For UAE-based enterprises, we are optimistic about the government’s continued efforts to reduce customs duties, in line with the Comprehensive Economic Partnership Agreement (CEPA) signed in....
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.... February 2022,” Chaturvedi had said. PTI CORR PY PY PY<BR> News - Press release - PIB ....