Interim Budget 2014-15

While presenting the Interim Budget 2014-15 in the parliament, finance minister P Chidambaram proposed no major changes in tax laws, slashed the excise duty from 12% to 10% on capital goods.

Current account deficit will be contained at 4.6% to US$ 45 billion for 2013-14, which is well below the record high level of 2012-13 and exports are likely to increase 6.4% to US$ 326 billion in 2013-14. GDP growth has improved and will be 4.9% for 2013-14. The Finance Minister expects to add about US$ 15 billion to the foreign exchange reserves by the end of financial year.

Interim Budget 2014-15 Highlights related to rubber & allied industry

Taxation

-No changes proposed in the tax laws

-Excise duty to be cut by 2% for Capital Goods & Consumer Durables

To give relief to the automobile industry, which is registering unprecedented negative growth

-Excise duty reduced for small cars from 12% to 8%

-Excise duties reduced on larger cars to 20%-24% from 24%-27%.

-Excise duty reduced for SUVs from 30% to 24%

-Excise duties on bikes/2 wheelers down to 8%

 Other

-India’s economy at 11th position globally, aims to be third

-Aim at fiscal deficit of 3% by 2016-17

-Govt to strengthen regulatory laws governing commodities

-Proposal to amend the Forwards Contracts Regulation Act

-Skill development should be promoted

The full Budget for 2014-15 will be presented by the new government in June-July.

                                                                                                                          

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Read lot more in Rubber4U – 1st March 2014 issue