Friday, August 10, 2012

14.77% INCREASE IN GBS

...GREATER ALLOCATIONS FOR FLAGSHIP SCHEMES

The basic income tax exemption limits for individuals, women & senior citizens is expected to increase, especially in the context of rising inflation. With the fiscal deficit ballooning, there are chances of service tax rate being restored to 12% in the upcoming Budget.

The fiscal incentives given to the automobile industry may be rolled back in terms of an excise duty hike in excise duties, considering the strong auto sales volumes. The Government is likely to continue export sops and extend the 2% interest subsidy given to exporters on rupee export credit from March 31 to December 2010.The Indian textile industry is expecting considerable interest rate subsidy in its exports segment. There are expectations of a 14% import duty being imposed on foreign power equipments.

Indian and foreign realty players expect reinstatement of tax concessions under Section 80 I (B) to developers for expediting affordable housing projects. The Oil exploration & production (E&P) companies want the tax Holiday u/s 80-IB(9) to be extended to 10 years from 7 years. Private health care providers have sought infrastructure status and extension of existing tax sops in the coming Budget. Faced with a huge slump in domestic demand due to a surge in cheap imports, the Rs 15,000-crore ferro alloy industry has urged the government to impose a customs duty of 10 per cent, at least, to provide a level playing field.

The Union Budget is expected to announce an Rs 373,000 crore gross budgetary support (GBS) for the coming financial year, up 14.77% from Rs 325,000 crore in 2009-10. This is in view of likely greater allocations for several of the government’s flagship social sector schemes including the NREGS.


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