Budget 2022 was launched on 1 February 2022 and is being regarded as being consistent with a directional alignment to last year's budget focus on building trust. It focuses on long-term growth and envisions building a strong and bold economy with emphasis on domestic manufacturing, digitisation, rural upliftment and planned urbanisation. It also highlights fiscal deficit consolidation in the near future, based on continued strong economic recovery despite the ongoing pandemic.
Overall policy framework lays emphasis on addressing both supply and demand side constraints and adopting an agile policy response to the unprecedented challenges posed by the ongoing pandemic for sustainable development and job creation.
Status quo has been maintained on the tax rates for most taxpayers. The introduction of tax on virtual digital assets is expected to shape a new taxation regime around cryptocurrencies and similar investments. Largely, the tax proposals are based on principles of consistency, with measures to reduce protracted litigation and rationalisation of customs regime.
Read our analysis on the implications of the various announcements.