New Delhi [India], March 6 (ANI): The quick commerce sector will be a key beneficiary of the income tax cut announced in the Union Budget 2025, as it will trigger strong consumption growth among middle-class consumers, an ICICI Securities report anticipated.
The report anticipates that the sector will be a key beneficiary of the recently announced income tax rebates as consumers will start witnessing higher disposable income from May 2025.
The report notes that the long-term historical data indicates that consumption increased noticeably in Financial Year 2006 (FY06), FY11, FY13, and FY14, the past four instances when there were tax cuts.
“Therefore, we believe that the income tax cuts announced in the union budget for FY26 are likely to trigger strong consumption growth among middle-class consumers, who are a key demographic for the hyperlocal e-commerce players,” the report added.
By definition, quick commerce is a form of e-commerce that delivers orders to their users in a few minutes. They are also called on-demand delivery services.
Food delivery, which is a famous segment in the quick commerce sector, has continued to scale profitably over the last 2 years and while there was some slowdown in growth in the third quarter of Financial Year 2025 (Q3FY25).
During her Union Budget 2025 speech, Finance Minister Nirmala Sitharaman announced that no income tax will be payable on income up to Rs 12 lakh, providing significant relief to taxpayers, especially the middle class.
This limit will be Rs 12.75 lakh for salaried taxpayers, counting Rs 75,000 of standard deduction. She also stated that the new income tax regime will be simpler, with a special focus on benefiting the middle class.
Under the new tax slabs, an income of up to Rs 4 lakh will have to pay Nil tax, hiked from Rs 3 lakh. A taxpayer in the new regime with an income of Rs 12 lakh will get a benefit of `Rs 80,000 in tax.
A person having an income of `Rs 18 lakh will get a benefit of Rs 70,000 in tax. A person with an income of Rs 25 lakh gets a benefit of Rs 110,000 under the new tax slabs. (ANI)
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