The amendments related to the Finance Sector will help in streamlining operations and boosting the economy.
Dr Pawan Goenka, President, SIAM welcomed the Union Budget 2011-12, terming it as a “Reform Oriented Budget”. Hon’ble Finance Minister has talked about several reform initiatives including roadmap for Direct Taxes Code, Constitutional Amendment Bill for Goods & Services Tax (GST) which would be tabled in the current session of the Parliament and also, pilot project across 11 states for implementation of IT towards GST introduction. The amendments related to the Finance Sector will help in streamlining operations and boosting the economy.
Mr S Sandilya, Vice President, SIAM added that the increase in flow of money to the rural areas from Rs. 3,75,000 crores to Rs. 4,75,000 crores would lead to demand creation in rural areas. However, this may also lead to increase in food inflation which one needs to keep a watch on. He added that the Hon’ble FM has also initiated a lot of course corrections, for instance, direct subsidy to Kerosene customers, which would remove a lot of malpractices from the system. Increase in investment in rural warehousing and encouragement for cold storage facilities is also a welcome move. He also welcomed increased allocation to the National Clean Energy Fund and National Skills Development Fund.
Dr Goenka remarked that Hon’ble FM has given a clear message to the industry by announcing setting up of National Mission for Hybrid and Electric Hybrid vehicles. He thanked the Department of Heavy Industry for taking it up on behalf of the industry. He also talked about several fiscal measures for promoting such vehicles including introduction of 10% excise duty for Fuel cell and Hydrogen vehicles, exemption to specified parts from Basic Customs Duty and CVD along with 5% excise duty, etc. which would provide a significant incentive to promote the development, manufacturing and sale of such vehicles in India.
The Hon’ble Finance Minister has also removed certain anomalies in the excise duty structure, which SIAM has been requesting for removal, like Taxi Refund extended to vehicles with seating capacity up to 13 persons and exemption to factory-built ambulances from additional excise duty.
Dr Goenka also welcomed that the Hon’ble FM has accepted our request of not rolling back the economic stimulus package and maintaining the Central CENVAT rate. The industry, however, was expecting some rationalization of excise duty on larger cars and utility vehicles, at least removal of additional excise duty of Rs. 15,000/- from such vehicles, which was not announced.
He hoped that the implementation of all the measures announced in the Union Budget today would fuel growth of overall economic activity and have a positive impact on the automotive industry.
Courtsey: indiainfoline.com
