Budget 2022-23 Expectations: Fintech firms demand further liberalisation of tax regime

The fintech industry has urged Finance Minister Nirmala Sitharaman to further liberalise the tax regime for financial sector startups. 

New Delhi: The fintech industry has urged Finance Minister Nirmala Sitharaman to further liberalise the tax regime for financial sector startups in the forthcoming Budget, arguing that it has an immense potential to promote financial inclusion and generate significant employment opportunities.

The finance minister is scheduled to present Union Budget 2022-23 in Parliament on February 1. On expectations of the fintech industry from the Budget, Gaurav Jalan, CEO and Founder, mPokket said all startups, including fintech firms, extensively use stock option to attract and retain talent.

However, employees of such fintech companies exercising their ESOP (employee stock ownership plan) option would not only have to arrange the funds to buy the same but also pay around 35 per cent tax as well since the allotted shares are considered part of their package, he said.