Budget 2013-14: Expectations of India Inc. | News and Analysis of projects in India

Friday, 22 Feb 2013

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Budget 2013-14: Expectations of India Inc.

INFRASTRUCTURE


		Priority sector lending status for infrastructure sector to reduce the cost of debt
		An independent regulatory authority for Roads and Highways sectors in India
		A multi-disciplinary autonomous body, National Environment Assessment and Monitoring Authority for expediting green clearances
		Granting infrastructure status to shipping industry
		Exemption of MAT for infrastructure sector during 80IA period
		National Investment Board (NIB) for complex issues and accelerating decision-making
		Allow private Airport Operators to issue long term non-taxable infrastructure bonds
		Tax concessions for cross-country pipelines

CEMENT


		Reduction in excise duty from 12 per cent
		Cenvat credit on Clean Energy Cess to mitigate cost
		Declared goods status, in line with other infrastructure products like coal and steel.
		Levy basic customs duty on cement imports

TEXTILES


		Reduce excise duty on man-made fibres to 4 per cent
		Hike customs duty on synthetic fibre

POWER


		Extension of Open General Licence (OGL) scheme for import of power from neighboring countries at nil import duty
		Mega Power Policy should be tweaked to mandate supply of power within three years from start of coal supply and not three years from the issue of provisional mega certificate
		Financial incentives for hydro Projects
		Extension of tax holiday for power sector by five years
		Exemption from dividend distribution tax for special purpose vehicles
		Provision of low cost funds to Solar Energy Projects
		Tax holiday of 10 years on solar power projects under section 80 I(A) of Income Tax act
		Removal of renewable energy projects from power sector and treat Renewable Energy sector as an independent sector
		Priority sector lending for renewable energy sector
		Energy security policy for, conveying use of portfolios, basket of fuels and development of renewable energy

OIL & GAS


		Tax Holidays for Exploration and Production activities relating to Natural Gas including Coal Bed Methane
		Tax break by categorising gas as declared goods
		Expansion of scope of “undertaking” for the purpose of a tax holiday to include development of additional fields under a single Production Sharing Contract
		Include exploration and refining activities in the infrastructure sector, thereby enabling 10 year tax holiday
		Weighted deduction of expenditure on drilling and exploration activities
		Customs duty exemption for LNG used for power generation
		Increase in gas prices to incentivise oil and gas majors to undertake new exploration to increase gas production in the country

STEEL & OTHER METALS


		Customs duty exemption on coal used in Iron & Steel industry
		Inclusion of shearing, splitting and annealing as manufacturing activity under the Central Excise Act
		Removal of steel products from the ambit of Free Trade Agreement
		Reduction of import duty on graphite electrodes and refractory materials, steel grade limestone, dolemite, manganese chrome ore and natural gas used by steel industry
		Increase drawback rates on color-coated sheets and pipes
		Increase basic import duty on aluminum products from 5 per cent to 10 per cent
		Impose export duty on bauxite
		Exempt gold and silver content in copper concentrate from import duty

TOURISM


		Include hotel projects as infrastructure Projects
		Industry status for tourism

HOUSING & REAL ESTATE


		Infrastructure status for affordable and low-cost housing
		Deduction of interest rate on borrowed capital

AUTOMOBILE


		Reduction in the excise duty on two-wheelers and cars
		Increase depreciation on commercial vehicles from 40 per cent to 60 per cent
		Increase duty on imported commercial vehicles from the current 10 per cent to 40 per cent
		Uniform taxation on components that go into manufacturing vehicles
		Customs duty on tyres to be increased from 10 per cent to 20 per cent
		As the Automobile industry involves large scale manufacturing at various levels, early introduction of GST to streamline taxation process
		Tax differentials between small and bigger cars to be narrowed

Quote of the week:
		"Budget 2013 can power the growth drivers of the economy in coming years, taking the GDP rate back to its trend line of 8% ." Adi B. Godrej, Chairman, Godrej Group

SOURCE:

CII, FICCI and ASSOCHAM

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