Budget 2023: Tax incentives, resources for teachers, expect edtech leaders

NEW DELHI: In union budget 2023, education technology leaders are expecting a lower tax bracket, financial rewards, low GST on EdTech services and products, and budget for professional development of teachers.

Sarvesh Agrawal, Founder and CEO, Internshala said, “In the forthcoming Union budget of 2023, edtech entrepreneurs are seeking a lower tax bracket on educational goods and services. In India, where education is important, about 50% of the population is under 25. All people would have more access to education and the entire Edtech ecosystem would benefit from a lower tax rate. Increased government support and funding for online initiatives are expected. The adoption of technology has grown significantly over the past two years, and the education sector has benefited from easily accessible online education and degree programs. The ecosystem will experience a significant boost as a result of tax incentives and financial rewards for edtech players.”

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Ashish Fernando, Founder and CEO,iSchoolConnect said, “The presentation of the Union Budget for 2023–2024 comes during a period of economic turmoil marked by high inflation, an impending global recession, geopolitical unpredictability, and the possibility of a Covid-19 resurgence. The EdTech industry saw a severe downturn in 2022, with many EdTech companies coming to a screeching halt. Budget allocation will therefore be a key component in determining the health and growth of each sector. We trust the government's determination and vision to strengthen sectors contributing to the larger goal of making the country inclusive.

“The Edtech sector has tremendous potential to democratize education, yet its high tax bracket acts as a barrier. Lowering the GST slab on EdTech products and services from 18% to 5-12 % will help bridge the gap. We expect the government to recognize the potential of Education technology and prioritize its development and adoption to build a robust education system,” he added.

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Rishabh Khanna, Founder, and CEO of Suraasa stated, “As we stand in 2023 and students are back in the classrooms, we can see the impact that the sudden shift to online learning has had on our education system. While it's been necessary to keep our students and communities safe, it's also highlighted the need to invest in bridging the skill gaps that have developed due to a lack of in-person learning. Teachers need to be prepared as well. This means investing in professional development and training opportunities that will help us effectively implement blended learning methods in the classroom and utilise the technology-enabled infrastructure. I am advocating for a budget dedicated towards programmes and resources that will help our students & teachers receive extra support and opportunities to succeed.”