India - Budget 2001

[Indian]

Some Highlights of The Budget

• Dividend tax to be cut to 10%
• 10-yr tax holiday in first 20 yrs for core industries
• 10-yr tax holiday in first 15 yrs for airports/ports
• Foreign telecast companies to be taxed
• Depreciation of 25% for ships and inland water plants
• Acc depreciation of 50% on new comm. vehicle for 1 yr
• Tax incentives for insurance companies
• Dedcutions in house repairs 25%
• Rs 150,000 interest deduction in housing loans
• 10 yr tax holiday for devlopment of SEZ
• Depreciation of 25% for ships and inland water vessels
• Tax exemption on commission from core industry
• Lower tax for lotteries at 30%
• 30% TDS on TV game show winnings
• Surcharge on corporates, except quake surcharge, to go
• Custom duty on IT/telecom products up by 15%
• Custom duty up 85% on crude
• Custom duty on edible oil, vanaspati up to 55%
• Duty on polyester/nylon chips cut by 25%
• 15% and 5% duty increase in rough diamonds/gems
• No change in direct taxes
• Cooperative societies to pay lower tax at 30%
• Peak custom duty to be cut to 20% in 3 years
• Transparency in new excise and customs duties
• LNG exempt from CVD
• LNG kits to attract custom duty of 5%
• CVD to be imposed on import of liquor
• 8% special excise abolished on several items
• Special excise on cars, soft drinks to be cut to 32%
• Total expenditure budgeted at Rs 3752.23 billion in 2001-02
• Tax collection to rise to Rs 18.06 billion
• Gujarat govt can float tax-free bonds for quake relief
• Plan outlay for power utilities raised: PTI
• Strategy of the Union Budget for 2001-02
• Tele-density likely to reach 3.5 per 100 by March 2001
• Special Excise rates of 8 and 24% abolished
• Single Excise Duty of 16%
• Spl duty of8 % on compressed gas
• Cenvat for HSD to be at 16%
• Special surcharge of 15% on cigarettes, chewing tobacco
• Excise duty on processed foods abolished
• Food preparations exempted from Excise
• Selloff of 27 PSUs including, Maruti, A-I, VSNL okayed
• Incentive fund of Rs 106.07 billion to set up for states
• Rs 42.43 billion set aside for state programmes in 2001
• Interest rates on small savings cut by 1.5%
• High level; expert group for govt pension to set up
• 8 non-viable PSUs to be closed
• SAIL, HMT revamp approved
• 6 ministries / departments ot be downsized by July 31
• 3 Secy and 2 Jt Secy level posts to axed by July 2001
• Allocation for Ministry of Social justice up to 7.90 billion
• Small savings scheme expert committee to set up
• Fiscal deficit not up, remains at 5.1%
• Teledensity likely to reach 3.5 per hundred by Mar 2001
• Central staff to be pared by 2 per cent per year
• Insurance scheme for landless agricultural labour
• FIIs can invest up to 49% in domestic companies
• SICA, Company Law to be amended
• Law on enforcement of securities in case of default
• Industrial Disputes and Labour Act to be amended
• Law on enforcement of securities in case of default
• Allocation of textile ministry up to Rs 6.50 billion
• Education allowance for poor children
• NPA recovery by banks increases
• Electronic funds transfer to be monitored by RBI
• Clearing Corporation to be set up by RBI
• Ports capacity to go up to 376 million tonnes
• Rs 61 crore for crop production in Eastern India
• NABARD to cut rate for storage facilities to 8.5%
• Reform of State Electricity Boards to be accelerated
• SEB losses a cause for major concern
• Credit outflow to agricultrue to be hiked
• Personal insurance cover for farmers holding kisan cards
• Economic growth would be 6 per cent: Sinha
• Exports grew by 20% during Apr-Dec 2000 in dollar terms
• NABARD interest rate to be cut from 11.5% to 10%
• Restrictions on inter-state grain movements to go
• Centre to withdraw from PDS in favour of states

some good reviews available here
http://www.rediff.com/money/crisil.htm
complete text of Finance Minister's Budget speech
http://indiabudget.nic.in/speechtext/

[Edited by Indian on 02-28-2001 at 03:32 AM]

[Indian]

Taking the cue from Finance Minister Yashwant Sinha's budget sops, major car and two-wheeler manufacturers including Maruti and Bajaj on Wednesday announced price cuts ranging between Rs 1,400 to Rs 42,000 in a collective bid to arrest falling sales.

The new prices, expected to boost sales of the industry suffering from a negative growth trend, will be effective from Thursday, major producers said.

Buoyed by Sinha's budgetary announcement to check import of second hand cars through a massive hike in import duty to 180 per cent, car producers said that they would pass on the benefits of excise reliefs to consumers.

Hailing the Sinha's fourth budget as a 'positive and growth oriented', car market leader Maruti said prices of its various models including '800cc Standard' would be slashed in

the range of Rs 11,000 to Rs 18,000.

MUL officials said "we will be passing on the entire excise cut to customers".

Ford India would reduce prices of its mid-size car 'Ikon' by Rs 29,000 to Rs 40,000, vice-president (external affairs) B S Rathor said.

Ford at present, sells five variants of the Ikon car in the domestic market.

The Indian unit of South Korean automaker Hyundai Motor Company said it prices of its premium small car 'Santro' and the mid-size car 'Accent' will be cut by Rs 18,000 and Rs 34,000, respectively, in the Delhi market.