BUDGET EXPECTATIONS Chidambaram No. 5

Group - 22

Broadly…

Personal Indirect Tax Direct Tax Corporate Macro The Common Man

Personal

Exemption limit to be 1.3 lakhs

Abolish banking transaction tax

Capital gains tax to be unchanged i.e. 20%

Crorepatis to be taxed higher

Direct

Standard deduction of Rs. 20000 for salaried

Remove surcharge on Income Tax

30% to be levied on Rs 5 Lakh and more

Direct tax to represent 50% of total tax collection

Indirect

Excise rate to be 14%...two other rates for merit and demerit goods

20% Goods and Service Tax [GST] rate for Centre and State

Custom Duty rate of 7.5%...two other rate for merit and demerit goods

Corporate

No change in rates

Let STPI [Software Tech Parks in India] lapse in 2009

10% surcharge should go…choice between surcharge and FBT

SEZ’s should have MAT after 5 years

Macro

Abolish kerosene and LPG subsidy

Disburse fertilizer subsidy directly to farmers

Abolish multiple taxation eg. Infrastructure, shipping, automobiles, etc

Macro

Steel industry wants iron ore conservation

Imports on power projects to have a basic 5% and CVD 8% [Countervailing Duty]

Pharma seeks a rise on weighted deduction from150% to 200%

The Common Man

220 million still below poverty line

Inflated food prices due to world economics

Basic necessities of food, clothing and affordable housing still a problem

The Common Man

Cover bad and doubtful farm loans up to Rs. 30000

Renewed emphasis on housing

Review lease rental service tax from the current 12.35%

No change in tax on auto-spares and CNG

The Common Man

LLP [Limited Liability Partnerships] can choose their taxation structure

Excise duty and VAT to be reduced on FMCG

CST on food processing to be reduced to 2%

The Common Man

Reduction in taxation for IT to enter rural areas

Emphasis on education – only 1 in 4 South- Asian engineer is employable

Conclusion

Larger purchasing power with the poor

Global approach through GST in accordance with Kelkar Committee Report

Agriculture, housing and education would be given more emphasis

Conclusion

Automobiles to be more affordable

FMCG to be cheaper

Employment opportunities through rural IT

Essential medicines to be affordable

Compiled by

Dilip Garga 80

Prinal Shah 107

Aditya Sonavane 111

Let the lungi weave its magic

Go Chidu!!!