News Release

For Immediate Release

Budget 2009: A submissive first step to reforms say finance heads of Indian industry
as per PricewaterhouseCoopers Opinion Poll

MUMBAI, 7 July 2009: After much has been debated on the Union Budget 2009,
PricewaterhouseCoopers conducted an opinion poll to see whether the budget actually met people’s
expectations. The opinion poll conducted in Delhi, Mumbai and Bangalore on 6 July 2009 reveals that
Budget 2009 has fairly met corporate India’s expectations from the new government. The poll reflects
the responses of people who attended the PricewaterhouseCoopers Budget Analysis seminars,
including chairmen, chief executives, managing directors, chief operating officers, financial directors,
chief financial officers and non-executive directors from some of India’s largest businesses.

Dinesh Kanabar, leader tax practice, PricewaterhouseCoopers, said, “The second UPA Government
had a three-pronged plan of action at this juncture: putting the economy back on track towards
achieving a growth rate of 9% of GDP, ensuring inclusive development and re-energising government
machinery to provide high quality public service, security and rule of law. Budget 2009 reflects a
modest first step in that direction”.

Key findings of the PricewaterhouseCoopers Opinion Poll:

There seems to be a lopsided view among the industry leaders that Budget 2009 could perhaps
have outlined stronger steps to attain the projected growth rate of 9%
Budget 2009 has reaffirmed the commitment to roll out Goods and Services Tax (GST) as per
schedule of 1 April 2010 but this seems to be a somewhat ambitious target
People are not in favour of taxing employee stock ownership plans (ESOPs) at the time of exercise
Overall, industry captains had mixed views on whether Budget 2009 had laid out a clear path
towards making the direct tax administration efficient

ENDS
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Notes to Editors:
Sample size - 300
Responses to PwC’s questions:

Has Budget 2009 put forward the right set of measures to achieve the projected growth rate
of 9%?

Yes 14%
No 86%

Budget 2009 has stuck with the GST roadmap deadline, but will it be met?

Yes 25%
No 75%

Has Budget 2009 made a beginning in the direction of making the direct tax administration
efficient?

Yes 40%
No 60%

Budget 2009 has reaffirmed the commitment to roll out GST as per schedule of 1 April 2010.
Does this remain an ambitious target?

Yes 71%
No 29%

Should ESOPs be taxed on Exercise or Sale?

Taxed on Sale 71%

Taxed on Exercise 29%

Overall, has Budget 2009 fairly met corporate India’s expectations from the new
government?
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Yes 64%
No 36%

About PricewaterhouseCoopers - India

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services to build public trust and enhance value for its clients and their stakeholders. PwC
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Contact:
Nandini Chatterjee
PricewaterhouseCoopers Pvt Ltd
nandini.chatterjee@in.pwc.com
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