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Tax Policy Changes to Allow for Freeing Up Cash-Flows that Companies can Utilise

A perspicuous manner of looking at the expenditure-revenue play would be to look at the cash flowing into the economy

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Finance, Ministers, Corporate
Essentially, the tax policy changes will allow for freeing up cash-flows that companies can utilise to make capital allocation decisions ranging from capital expenditure, talent acquisition. IANS

The Finance Ministers announcement to bring down corporate tax rates in India will surely provide a substantial boost to the economy. Essentially, the tax policy changes will allow for freeing up cash-flows that companies can utilise to make capital allocation decisions ranging from capital expenditure, talent acquisition, or strengthening the balance sheets.

A perspicuous manner of looking at the expenditure-revenue play would be to look at the cash flowing into the economy due to the policy changes. The taxation policy changes that allow for lower corporate taxes will allow more cash in hand for corporates. It is expected that additional cash in the hands of the companies will allow for a slew of opportunities to be tapped into by the corporate sector. Most importantly, the fiscal boost will benefit the industry supply chains as the excess cash will boost corporates and their suppliers, thereby having a positive ripple effect.

Firstly, for cash-strapped corporates, this is an opportunity to get their capital structure in order. In an economy where companies have faced issues with excessive debt, this is an opportunity for the cash to be utilised to pare back debt and repay lenders thereby both improving corporate balance sheets and pumping credit into the system. Secondly, excess liquidity that will be available will allow Indian companies to gradually start competing better on a global level through capital expenditure in areas they deem necessary. Thirdly, cash in hand also makes Indian companies a more attractive destination for both domestic and international capital (which of late has been going out).

Whichever way one looks at the tax changes, the excess money will help whether corporates decide to invest the money, pay back loans, buyback debt, pay shareholders, or boost salaries. Primarily, the cash flow positive nature of the policy changes by the government will provide a significant fillip to economic growth. More importantly, if the policy implementation is done well, then the positive multipliers for the economy will be much beyond this financial year. Structurally, low tax rates can have significant positive multiplier effects in the years to come.

Finance, Ministers, Corporate
The Finance Ministers announcement to bring down corporate tax rates in India will surely provide a substantial boost to the economy. Pixabay

Now with robust tax policy moves to boost the economy through “expenditure”, the government must focus extensively on the “revenue” generation side. As with all policy changes, especially expansionary fiscal policy, there is now the need to generate the excess cash by the government that will be ploughed back into the economy. In layman terms, how can the government generate more money despite the substantial cut in tax rates that will be effectively used for boosting the economy?

Therefore, now is the time also to start focusing on effective “revenue” generation to fund the expansionary fiscal policy. The revenue foregone to fund the corporate tax cuts, as stated by the government, is Rs 1,45,000 crore. More effective revenue generation policies are therefore the need of the hour. Non-tax revenue sources such as asset monetisations must be focused upon to ensure a steady flow of cash that can help finance the revenue foregone.

While asset monetisation from the government saw some action in terms of the NHAI TOT auctions last year, given the moves on the “expenditure” side, this is the time to ensure that the “revenue” generation side picks up in speed, efficiency and clarity. Monetising assets ranging from land banks sitting with government institutions, cash-generating infrastructure assets, and inefficient companies has been debated upon for long. Now is the time to implement a clear roadmap to generating revenues through such monetisation schemes. Because the advantages of such non-tax revenue generation schemes are multi-fold, for one, such schemes will assist in providing revenues that are needed to fund fiscal policy. For the other, markets and investors will have greater confidence seeing a smoothening in the policy frameworks that help cash to flow into productive uses within the economy � thereby generating greater investor confidence in Indian investments.

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The issues that corporate balance sheets and the broader Indian economy have faced over the last few years at a core level are cash-flow related, or rather a shortage in liquidity. Policy moves such as the present cut of tax rates for the corporate world, aimed at freeing up cash-flows on corporate balance sheets, and policies aimed at effectively generating the cash-flows as mentioned above will provide a significant boost to the Indian economy. Going forward, the ability to balance the effective policy framing and implementation on both the “expenditure” and “revenue” side will be the real gamechanger. (IANS)

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How To Become a Strategic Marketing Manager

Getting Strategic Marketing Manager experience by taking on an internship is a great way to learn about the field and obtain some experience while still in school

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A strategic marketing manager is responsible for finding and developing a customer base for a company’s products. Pixabay

A great marketing plan is a culmination of strategy, application of appropriate marketing tactics and brand positioning. In the backdrop of economic growth and business expansion, marketing has gained prominence as organisations want to have a market presence and find the right demographic for their services/products. Those who are interested in making a career in the field of strategic marketing domain can benefit from the right academic program and develop comprehensive strategic marketing plans with a degree

What does Strategic marketing managers do?

A strategic marketing manager is responsible for finding and developing a customer base for a company’s products. The strategic marketing manager, along with the market research team and product development manager, is responsible for designing and implementing the company’s marketing plan. Typically requiring long hours and several years of experience in the field Marketing Managers have a demanding career. It also involves travelling which could range from meeting clients to scouting prospective venues for a product launch.

Here is the checklist to become a successful strategic marketing manager

 

Get an Educational Degree

The minimum education requirement to become a Strategic Marketing Manager is a bachelor’s degree in business, marketing, communications, advertising, or other related fields. However, most companies may ask for a master’s degree. 

One should also consider taking part in a management-training program or continuing education program at a business college.

Acquire Experience

Getting Strategic Marketing Manager experience by taking on an internship is a great way to learn about the field and obtain some experience while still in school. 

Make most of your internship by getting as much hands-on experience as you can. Sometimes, Interns are told to make copies and answer phones. In that case, they will have to volunteer for other projects and demonstrate their eagerness to learn. Apart from gaining experience, an internship is an opportunity to make important contacts and networks in the industry which can be beneficial in the future.

Look for an entry-level job in marketing

There are various types of marketing careers one could pursue as a marketing manager. It is advisable to spend a few years in a entry-level marketing job, such as Marketing Assistant, Sales Representative or Advertising Assistant, to strengthen your background skills and gain the compulsory work experience required to become a Strategic Marketing Manager. Once you garner enough experience, you can put forward your views on why you deserve to be promoted to a Strategic Marketing Manager by pointing out how you have contributed to the department.

Acquire the necessary skills

Strategic Marketing Managers have strong communication, sales and presentation skills. They must be creative and have the ability to manage many projects at once. Expert knowledge of current marketing trends is also necessary. 

Business
The strategic marketing manager, along with the market research team and product development manager, is responsible for designing and implementing the company’s marketing plan. Pixabay

Strategic Marketing Managers must have excellent leadership skills and the ability to hire, train and motivate team members. Strong presentation and communication skills are also essential for a career in marketing. The best way to obtain marketing management skills is on-the-job training in an entry-level position.

Join professional marketing associations

By joining a professional marketing association, you can stay informed on the latest industry developments, procedures and technologies. You will also gain access to professional networking opportunities. 

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With these options, aspiring marketers can stay ahead of the competition and build a thriving career.