The DMK on Thursday said that its alliance with the Congress is like “two bulls” of a bullock cart, suggesting thereby the softening of its stand on the government’s decision to hike prices of fuels.
“Two bulls taking the bullock cart in the right direction,” DMK Leader in Rajya Sabha T. Siva said, referring to his party’s alliance with the Congress. Mr. Siva was speaking in support of the Motion of Thanks to the President’s address.
DMK chief M. Karunanidhi was reported to have sent a letter to the Prime Minister opposing the fuel price hike. As Finance Minister Pranab Mukherjee made changes in the customs and excise duties in the 2010-11 Budget, petrol price increased by Rs 2.71 a litre and diesel by Rs 2.55 a litre.
Mr. Siva praised the UPA government for developments taking place in the country and said, “The U.S. is scared of developments taking place in India.” He said the pessimism of the Opposition on India’s growth story is out of place.
Showing posts with label Union Budget. Show all posts
Showing posts with label Union Budget. Show all posts
Thursday, March 4, 2010
Friday, February 26, 2010
IT industry worried over non-extension of STPI
The software industry on Friday hit out at the government for increasing the minimum alternate tax and for ignoring the industry’s plea for extending STPI scheme, which would have continued to give tax breaks.
The Software Technology Parks of India (STPI) scheme would have continued to give tax breaks to their export revenues beyond 2011 onwards.
“The Finance Minister did not announce any extension of the STPI scheme which we were expecting. We still have one more year to go as the extension will expire in March 2011. We would take up the issue again,” Nasscom President Som Mittal said. Indian software export industry is set to touch USD 48.7 billion this fiscal and it is currently not taxed.
Most of the stock market listed IT companies reacted negatively to the government’s inaction on the crucial STPI scheme, pulling the sectoral index down marginally on a day when the overall BSE index Sensex was up by 175 points.
Companies such as TCS, Infosys and Tech Mahindra closed marginally lower than their previous day’s close. Only Wipro was up slightly (0.98 per cent) at Rs. 676.70.
Mittal, however, said it may not hit the industry yet but the association would demand some cushion for the small and medium IT companies who would be exposed without STPI benefit.
However, the country’s sixth largest software exporter Patni Computers said, “Budget has not addressed IT Industry’s demand for extension of tax holiday under STPI scheme which is a significant negative for the Industry“.
The increase of MAT to 18 per cent from 15 is also a big dampener, said companies and experts.
The Software Technology Parks of India (STPI) scheme would have continued to give tax breaks to their export revenues beyond 2011 onwards.
“The Finance Minister did not announce any extension of the STPI scheme which we were expecting. We still have one more year to go as the extension will expire in March 2011. We would take up the issue again,” Nasscom President Som Mittal said. Indian software export industry is set to touch USD 48.7 billion this fiscal and it is currently not taxed.
Most of the stock market listed IT companies reacted negatively to the government’s inaction on the crucial STPI scheme, pulling the sectoral index down marginally on a day when the overall BSE index Sensex was up by 175 points.
Companies such as TCS, Infosys and Tech Mahindra closed marginally lower than their previous day’s close. Only Wipro was up slightly (0.98 per cent) at Rs. 676.70.
Mittal, however, said it may not hit the industry yet but the association would demand some cushion for the small and medium IT companies who would be exposed without STPI benefit.
However, the country’s sixth largest software exporter Patni Computers said, “Budget has not addressed IT Industry’s demand for extension of tax holiday under STPI scheme which is a significant negative for the Industry“.
The increase of MAT to 18 per cent from 15 is also a big dampener, said companies and experts.
Petrol prices to rise by up to Rs 2.67 a litre
Petrol and diesel prices will go up by Rs 2.67 a litre and Rs 2.58 per litre, respectively, after Finance Minister Pranab Mukherjee on Friday raised customs and excise duties on the two, virtually putting the Kirit Parikh Committee report on fuel price in cold storage.
Customs duty on petrol and diesel were hiked to 7.5 per cent from 2.5 per cent while excise duty was raised by Re.1 a litre to Rs 14.35 and Rs 4.60 per litre on non-branded (normal) petrol and diesel respectively.
The incidence of customs and excise duty would result in petrol prices going up by Rs 2.67 a litre in Delhi and diesel by Rs 2.58 per litre with effect from midnight tonight.
Petrol, in Delhi currently costs Rs 44.72 a litre and diesel Rs 32.92 per litre.
Mr. Mukherjee also imposed 5 per cent import duty on crude (currently nil), a move that would impact refiners like Reliance Industries and Essar Oil with their input cost going up.
Reliance Industries’ 33 million tons a year refinery catering to domestic market would alone have to bear Rs 5,100 crore because of higher rates. Its other 29 million tons unit is only for exports and does not pay customs duty.
The rates hike virtually put the Parikh report on fuel pricing reforms in cold storage as implementing the expert group report on freeing petrol and diesel prices would mean a further Rs 4.94 a litre increase in petrol and Rs 3.20 per litre hike in diesel rates.
Customs duty on petrol and diesel were hiked to 7.5 per cent from 2.5 per cent while excise duty was raised by Re.1 a litre to Rs 14.35 and Rs 4.60 per litre on non-branded (normal) petrol and diesel respectively.
The incidence of customs and excise duty would result in petrol prices going up by Rs 2.67 a litre in Delhi and diesel by Rs 2.58 per litre with effect from midnight tonight.
Petrol, in Delhi currently costs Rs 44.72 a litre and diesel Rs 32.92 per litre.
Mr. Mukherjee also imposed 5 per cent import duty on crude (currently nil), a move that would impact refiners like Reliance Industries and Essar Oil with their input cost going up.
Reliance Industries’ 33 million tons a year refinery catering to domestic market would alone have to bear Rs 5,100 crore because of higher rates. Its other 29 million tons unit is only for exports and does not pay customs duty.
The rates hike virtually put the Parikh report on fuel pricing reforms in cold storage as implementing the expert group report on freeing petrol and diesel prices would mean a further Rs 4.94 a litre increase in petrol and Rs 3.20 per litre hike in diesel rates.
Union Budget 2010-11: Highlights
Highlights of the Union Budget 2010-11 presented by Finance Minister Pranab Mukherjee on Friday:
— Net revenue gain from tax proposals at Rs 20,500 crore
— Certain accredited news agencies exempted from service tax
— Service tax to remain 10 per cent
— Increase in duty on gold and silver import
— Clean energy cess of Rs 50 per ton to be levied on coal produced in India
— 10 per cent central excise duty on all non-petroleum products
— Structural changes in excise duties on cigarettes, cigars and cigarillos.
— Revenue loss of Rs 26,000 crore on direct tax proposals.
— 7.5 per cent duty on petrol, diesel, crude restored.
— Exempt duty raised for all non-smoking tobacco producs
— Investment linked tax deductions to be allowed to two—star hotels anywhere in the country.
— Fiscal deficit seen at 4.8 per cent and 4.1 per cent in 2011—12 and 2012—13 respectively.
— 20 per cent for income above Rs 5 lakh and up to Rs 8 lakh
— 30 per cent tax for income above Rs 8 lakh.
— Income Tax department ready with two—page Saral—2 return forms for individual salaried assesses
— Surcharge on companies reduced to 7.5 per cent
— Additional exemption of Rs 20,000 for long tem investment in infra bonds
— Ten per cent tax slab for income upto Rs. 5 lakhs.
— No income Tax upto Rs. 1.6. lakhs
— National Social Security Fund created for workers in unorganised sector with allocation of Rs.1,000 crore
— Government to give Rs.1,000 for each National Pension Scheme account opened by workers in the unorganised sector
— Exclusive skill development programme for the textile sector
— Fifty percent hike in allocation for schemes for women and child development
— Rs.4,500 crore allocated for ministry of social justice and empowerment, a hike of 80 percent
— Rs.2,600 crore allocated for ministry of minorities affairs
— Rs.1,900 crore for Unique Identification Authority of India
— Rs.147,344 crore allocated for defence
— 2,000 youth to be recruited in central paramilitary forces
— Draft Food Security Bill prepared and will be put in the public domain
— Allocation on primary education raised from Rs.26,800 crore to Rs.31,300 crore
— Banking facilities to be provided to all habitations with a population of 2,000 and more
— Rs.66,100 crore allocated for rural development in 2010—11; Rs.40,100 crore for National Rural Employment Scheme; RS.48,000 crore for Bharat Nirman
— Rs.1,270 crore allocated for Rajiv Awas Yojna for slum dwellers, up from Rs.150 crore, an increase of 700 percent with the aim of creating a slum free India.
— Forty—six percent of plan allocations in 2010—11 will be for infrastructure development
— Coal Regulatory Authority to be set up to benchmark standards of performance
— Allocation for new and renewable energy sector increased 61 percent from Rs.620 crore to Rs.1,000 crore in 2010—11
— National Clean Energy Fund to be established
— Rs.200 crore allocated as special package for Goa to prevent erosion and increase green cover.
— Government committed to growth of SEZs.
— Four—pronged strategy for growth of agricultural sector.
— Rs.200 crore to be provided in 2010—11 for climate—resilient agricultural initiative.
— Involvement of private sector in grain storage to continue for another two years.
— In view of drought and floods, debt repayment period extended to June 2010.
— Five more mega food processing projects in addition to 10 existing ones.
— FDI flows in April—December 2009 $20.9 billion.
— FDI policy to be made more user—friendly with one comprehensive document.
— Apex level financial stability council to be set up for banking sector.
— Indian Banking Association to give additional licences to private players.
— Provision for further capital for regional rural banks.
— Roadmap for reducing public debt in six months.
— Implementation of direct tax code from April 2011.
— Government actively engaged in finalising structure of general sales tax regime; hopes to implement it from April 2011.
— Rs.35,000 crore raised from divestment in 2009—10; will be higher in 2010—11.
— New fertiliser policy from April 2010; will lead to improved productively and more income for farmers.
— Economy stabilised in first quarter of 2009—10; strong rebound in second quarter; overall growth at 7.2 and could be higher when Q3 and Q4 are taken into account.
— Export figures for January encouraging.
— Hope to breach 10 percent growth mark in not too distant future.
— Government set in motion steps to bring down food inflation.
— Need to review stimulus package; need to make growth more broad—based.
— India has weathered global economic crisis well; Indian economy in far better position than it was a year ago. In 2009 Indian economy faced grave uncertainty; delay in southwest monsoon had undermined agricultural production.
— First challenge now is to quickly revert to 9 percent growth and then aim for double digit growth; need to make recovery more broadbased.
— Second challenge is to make growth more inclusive; have to strengthen food security.
— Third challenge is to overcome weakness in government’s public delivery mechanism; a long way to go in this.
— Net revenue gain from tax proposals at Rs 20,500 crore
— Certain accredited news agencies exempted from service tax
— Service tax to remain 10 per cent
— Increase in duty on gold and silver import
— Clean energy cess of Rs 50 per ton to be levied on coal produced in India
— 10 per cent central excise duty on all non-petroleum products
— Structural changes in excise duties on cigarettes, cigars and cigarillos.
— Revenue loss of Rs 26,000 crore on direct tax proposals.
— 7.5 per cent duty on petrol, diesel, crude restored.
— Exempt duty raised for all non-smoking tobacco producs
— Investment linked tax deductions to be allowed to two—star hotels anywhere in the country.
— Fiscal deficit seen at 4.8 per cent and 4.1 per cent in 2011—12 and 2012—13 respectively.
— 20 per cent for income above Rs 5 lakh and up to Rs 8 lakh
— 30 per cent tax for income above Rs 8 lakh.
— Income Tax department ready with two—page Saral—2 return forms for individual salaried assesses
— Surcharge on companies reduced to 7.5 per cent
— Additional exemption of Rs 20,000 for long tem investment in infra bonds
— Ten per cent tax slab for income upto Rs. 5 lakhs.
— No income Tax upto Rs. 1.6. lakhs
— National Social Security Fund created for workers in unorganised sector with allocation of Rs.1,000 crore
— Government to give Rs.1,000 for each National Pension Scheme account opened by workers in the unorganised sector
— Exclusive skill development programme for the textile sector
— Fifty percent hike in allocation for schemes for women and child development
— Rs.4,500 crore allocated for ministry of social justice and empowerment, a hike of 80 percent
— Rs.2,600 crore allocated for ministry of minorities affairs
— Rs.1,900 crore for Unique Identification Authority of India
— Rs.147,344 crore allocated for defence
— 2,000 youth to be recruited in central paramilitary forces
— Draft Food Security Bill prepared and will be put in the public domain
— Allocation on primary education raised from Rs.26,800 crore to Rs.31,300 crore
— Banking facilities to be provided to all habitations with a population of 2,000 and more
— Rs.66,100 crore allocated for rural development in 2010—11; Rs.40,100 crore for National Rural Employment Scheme; RS.48,000 crore for Bharat Nirman
— Rs.1,270 crore allocated for Rajiv Awas Yojna for slum dwellers, up from Rs.150 crore, an increase of 700 percent with the aim of creating a slum free India.
— Forty—six percent of plan allocations in 2010—11 will be for infrastructure development
— Coal Regulatory Authority to be set up to benchmark standards of performance
— Allocation for new and renewable energy sector increased 61 percent from Rs.620 crore to Rs.1,000 crore in 2010—11
— National Clean Energy Fund to be established
— Rs.200 crore allocated as special package for Goa to prevent erosion and increase green cover.
— Government committed to growth of SEZs.
— Four—pronged strategy for growth of agricultural sector.
— Rs.200 crore to be provided in 2010—11 for climate—resilient agricultural initiative.
— Involvement of private sector in grain storage to continue for another two years.
— In view of drought and floods, debt repayment period extended to June 2010.
— Five more mega food processing projects in addition to 10 existing ones.
— FDI flows in April—December 2009 $20.9 billion.
— FDI policy to be made more user—friendly with one comprehensive document.
— Apex level financial stability council to be set up for banking sector.
— Indian Banking Association to give additional licences to private players.
— Provision for further capital for regional rural banks.
— Roadmap for reducing public debt in six months.
— Implementation of direct tax code from April 2011.
— Government actively engaged in finalising structure of general sales tax regime; hopes to implement it from April 2011.
— Rs.35,000 crore raised from divestment in 2009—10; will be higher in 2010—11.
— New fertiliser policy from April 2010; will lead to improved productively and more income for farmers.
— Economy stabilised in first quarter of 2009—10; strong rebound in second quarter; overall growth at 7.2 and could be higher when Q3 and Q4 are taken into account.
— Export figures for January encouraging.
— Hope to breach 10 percent growth mark in not too distant future.
— Government set in motion steps to bring down food inflation.
— Need to review stimulus package; need to make growth more broad—based.
— India has weathered global economic crisis well; Indian economy in far better position than it was a year ago. In 2009 Indian economy faced grave uncertainty; delay in southwest monsoon had undermined agricultural production.
— First challenge now is to quickly revert to 9 percent growth and then aim for double digit growth; need to make recovery more broadbased.
— Second challenge is to make growth more inclusive; have to strengthen food security.
— Third challenge is to overcome weakness in government’s public delivery mechanism; a long way to go in this.
Opposition walkout over hike in petroleum product duties
The proposed changes in duties related to petroleum products in the Budget stirred a hornet’s nest on Friday with the entire Opposition staging a walkout from the Lok Sabha and warning that they will not allow Parliament to run till a rollback is announced.
“This is a move that would lead to rise in prices of diesel and petrol and hit the common man already burdened by price rise,” Leader of Opposition Sushma Swaraj said immediately after the walkout.
The issue united the entire Opposition with Left leaders like Gurudas Dasgupta, Samajwadi Party chief Mulayam Singh Yadav and RJD president Lalu Prasad addressing an impromptu joint press conference outside the Parliament House.
“The entire Opposition is together,” Mr. Prasad thundered attacking the government and accusing it of acting in a “dictatorial manner” against the interests of the common people. He said Parliament would not be allowed to function till a rollback is effected.
Raising anti-government slogans, they chanted “Jo Sarkar Nikammi Hai, Woh Sarkar Badalni Hai” (we have to change the inefficient government).
“We have boycotted the budget. Soon after a discussion on price rise, the government has increased the prices of petroleum products. This is anti-people,” Ms. Swaraj said.
She said any increase in prices of petroleum product will be an “indirect tax” and have a cascading effect on the prices of all commodities.
“This is a move that would lead to rise in prices of diesel and petrol and hit the common man already burdened by price rise,” Leader of Opposition Sushma Swaraj said immediately after the walkout.
The issue united the entire Opposition with Left leaders like Gurudas Dasgupta, Samajwadi Party chief Mulayam Singh Yadav and RJD president Lalu Prasad addressing an impromptu joint press conference outside the Parliament House.
“The entire Opposition is together,” Mr. Prasad thundered attacking the government and accusing it of acting in a “dictatorial manner” against the interests of the common people. He said Parliament would not be allowed to function till a rollback is effected.
Raising anti-government slogans, they chanted “Jo Sarkar Nikammi Hai, Woh Sarkar Badalni Hai” (we have to change the inefficient government).
“We have boycotted the budget. Soon after a discussion on price rise, the government has increased the prices of petroleum products. This is anti-people,” Ms. Swaraj said.
She said any increase in prices of petroleum product will be an “indirect tax” and have a cascading effect on the prices of all commodities.
Cars, cigarettes, TVs, jewellery to cost more; toys to cost less
Consumers will have to pay more for petrol, diesel, cars, TVs, cigarettes, tobacco, air-conditioner, gold and silver as the Government on Friday announced hike in excise duty as part of a partial roll back of stimulus measures announced for reviving the economy.
On the other hand, mobile accessories, medical equipment energy efficient CFL lamps, set top boxes, compact disc, toys and books will be cheaper on account of some tax concessions offered on these items by Finance Minister Pranab Mukherjee in the Union Budget for 2010-11.
“Symptoms of economic recovery are widespread and more clear now,” he said.
Before announcing the tax measures, Mr. Mukherjee substantially cut income tax rates along with other direct tax concessions that would result in a net loss of Rs 26,000 crore to the exchequer.
On the other hand, mobile accessories, medical equipment energy efficient CFL lamps, set top boxes, compact disc, toys and books will be cheaper on account of some tax concessions offered on these items by Finance Minister Pranab Mukherjee in the Union Budget for 2010-11.
“Symptoms of economic recovery are widespread and more clear now,” he said.
Before announcing the tax measures, Mr. Mukherjee substantially cut income tax rates along with other direct tax concessions that would result in a net loss of Rs 26,000 crore to the exchequer.
Tuesday, January 26, 2010
Power, Labour ministries may not see any hike in Plan outlay
Plan expenditure of two ministries, Power and Labour & Employment, may be retained at the current fiscal level of Rs 10,130 crore in the forthcoming Budget in view of the widening fiscal deficit.
The Planning Commission has recommended this to the Finance Ministry, since both ministries are close to exhausting their outlays in the first three years of what they should be spending during the entire 11th Plan (2007-12).
