Budget Countdown: What's in store... 4 days to go

[K.Karthik Raja]

Budget Countdown: What's in store... 4 days to go

Finance Minister P. Chidambaram will present the Union Budget for
2008-09 (Apr-Mar) on Feb 29. A daily update on the country's
expectations of the Budget, cutting across industry sectors and the
financial markets...

TELECOM SECTOR
===============
UMANG DAS, MANAGING DIRECTOR, SPICE COMMUNICATIONS LTD
"Considering the intense competition and the affordability of
services
that we are seeking to provide, we would want the high cost structure
to be reviewed. We are paying 25% of our costs as taxes, be it
spectrum charges, licence fees, interconnect charges, customs duty. We
want uniformity in taxes and incentives to share our infrastructure."
.
S.D. SAXENA, DIRECTOR, FINANCE, BHARAT SANCHAR NIGAM LTD
"The service tax needs to be lowered. More than that, there is a
need to reform the way implementation and collection of service tax is
done. For example, I pay service tax when an international long
distance services provider hands over the call to me. I may get the
service tax back but I have to claim Cenvat credit for that which is a
long process. And any delay in payment of the tax invites penalty."
.
T.V. RAMACHANDRAN, DIRECTOR GENERAL, CELLULAR OPERATORS ASSOCIATION OF
INDIA
"We want service providers to be exempted from paying service tax
on interconnect usage charges. Interconnect usage charges are paid on
a revenue share basis. Interconnect usage charges are levied for
allowing the call from the cellular service provider to be carried
over to the other service provider. TDS on these charges should also
be abolished."
.
S.C. KHANNA, SECRETARY GENERAL, ASSOCIATION OF UNIFIED TELECOM SERVICE
PROVIDERS OF INDIA
"License fee revenue share be limited to 6% of adjusted gross
revenue inclusive of the 3% Universal Services Obligation levy. This
revenue share ranges between 6-10% of adjusted gross revenue besides
the 5% USO levy. The government should also reduce the spectrum usage
charges to 0.5% of AGR from 2-6% now."
.
Other steps sought by the telecom sector:
* Telecom operators have to install towers, etc. and spend huge amount
on fuel for maintenance of these sites. Since fuel consumption is
high, CENVAT credit for fuel should be allowed.
* Lower duty on wireless data cards.
* License fee revenue share be limited to 6% of adjusted gross revenue
inclusive of the 3% Universal Services Obligation levy. This revenue
share ranges between 6-10% of adjusted gross revenue besides the 5%
USO levy.
* The customs duty rates for telecom equipment range from 4% to 37%.
It is suggested to bring all items required for the telecom projects
under 0% basic duty.
* Excise duty on all locally manufactured telecom equipment be pegged
at lowest level of 8%.

S E C T O R S C O V E R E D E A R L I E R:
**********************************************
SHIPPING
========
S.S. KULKARNI, SECRETARY GENERAL, INDIAN NATIONAL SHIPOWNERS
ASSOCIATION
* Rationalise taxation regime for shipping industry to bring it on par
with
international practices.
* Service tax, tax on interest income, MAT on ship sale profit and
seafarers' tax--need to be addressed on priority basis.
.
S. HAJARA, CHAIRMAN & MANAGING DIRECTOR, SHIPPING CORP. OF INDIA
* Level playing field with international shipping companies.
.
ANIL DEVLI, EXECUTIVE DIRECTOR, SHREYAS SHIPPING AND LOGISTICS LTD
* Tax everyone or exempt seafarers working on Indian ships.
.
Other steps sought by the shipping sector:
* Profit on sale of vessels be treated as core income
* Service tax on input services be nil
.
.
PHARMACEUTICALS
===============
TAPAN RAY, DIRECTOR-GENERAL, ORGANISATION OF PHARMACEUTICAL PRODUCERS
OF INDIA
* Boost investment in R&D
* Rationalisation of excise and customs duty, fringe benefit tax
.
B.N.SINGH, PRESIDENT, INDIAN DRUG MANUFACTURERS ASSOCIATION
* Central excise on allopathic, ayurvedic drugs be cut to 8% from 16%.
* Alternatively, the abatement of 42.5% from MRP be increased to 55%.
.
SUDHIR SINGHI, CFO, AUROBINDO PHARMACEUTICALS
* Weighted deduction on R&D spend outside the country.
.
OTHER MEASURES SOUGHT BY PHARMA INDUSTRY:
* Fiscal incentives for research be valid for at least 10 years.
* Weighted deduction on expenditure on research be raised to 200% from
150%.
* Land and building for research be considered for depreciation.
* Reduce penalties on transfer pricing to international levels of
0-40%.
* Total exemption for life saving drugs from customs duty.
* Increase abatement to 55% from existing 42.5%.
.
.
CEMENT
======
D.D. RATHI, DIRECTOR & CHIEF FINANCIAL OFFICER, GRASIM INDUSTRIES
* Desirable that taxes, including excise, can be brought down.
* Abolition of import duty on coal, pet coke; allotment of captive
coal mines.
.
VINOD JUNEJA, DEPUTY MANAGING DIRECTOR, BINANI CEMENT
* Increase in import duty on cement to at least 5% as against nil now.
* Import duty on coal can be removed.
* Simplification of excise structure; duty be cut by at least 5% vs
16% now.
.
P.C. NALWAYA, MANAGING DIRECTOR, ANDHRA CEMENTS
* Countervailing duty on imported cement be reimposed.
* A flat excise rate.
.
CEMENT MANUFACTURERS' ASSOCIATION
* Cut taxes, which currently account for over 60% of ex-factory price.
* Abatement of 55% on excise duty on cement.
* Reduce royalty on limestone from current 45 rupees per tn.
* Supply of fly ash for 10 years free of cost.
* Cut VAT on cement, clinker to 4% in line with steel sector.
.
.
MUTUAL FUNDS
============
KRISHNAMURTHY VIJAYAN, CHIEF EXECUTIVE OFFICER, JPMORGAN MUTUAL FUND
* Bond funds should be placed on par with equity funds for taxation
.
SANDESH KIRKIRE, CHIEF EXECUTIVE OFFICER, KOTAK MAHINDRA MUTUAL FUND
* Maintain status quo on dividend distribution tax on debt plans.
* Bring fund of funds schemes on par with underlying scheme.
* Tax on overseas funds investing in equity should be same as equity
fund.
.
RAJIV SHASTRI, HEAD, BUSINESS DEVELOPMENT, LOTUS INDIA MUTUAL FUND
* Taxation on mutual funds should remain neutral.
* Fund of funds schemes should enjoy same benefits as equity funds.
.
DEVENDRA NEVGI, CHIEF INVESTMENT OFFICER, QUANTUM MUTUAL FUND
* Liberalise FII investments into mutual funds further.
* Relax restrictions on pension money flow into market.
.
.
ECONOMISTS
==========
SUBIR GOKARN, CHIEF ECONOMIST, CRISIL
* No change in direct taxes.
* Change petroleum duty structure to specific duty.
* Integrate excise duty, service tax to move towards GST.
* Transitory tax on short-term capital flows.
* Measures to take stock on social spending.
.
ABHEEK BARUA, CHIEF ECONOMIST, HDFC BANK
* Concrete steps to plug leakage in excise collections.
* Reassert commitment to fiscal consolidation.
* Remove surcharge on direct taxes; reduce exemptions.
* Reintroduce tax-free bonds for infrastructure sector.
* Relax external commercial borrowing norms for infrastructure sector.
.
SUMITA KALE, CHIEF ECONOMIST, INDICUS ANALYTICS
* Focus on implementation and delivery of subsidies.
.
SHASHANKA BHIDE, SENIOR RESEARCH COUNSELLOR, NCAER
* Non-tax incentives to improve investment opportunities.
* Attempt to ensure demand does not slow down significantly.
* Measures to raise resources for infrastructure development.
.
.
COMMODITY MARKET
================
P.H. RAVIKUMAR, CEO, NATIONAL COMMODITY AND DERIVATIVES EXCHANGE
* Allow banks and mutual funds to participate in commodity market.
* Allow foreign brokers to participate in commodity market.
.
KAILASH GUPTA, MANAGING DIRECTOR, NATIONAL MULTI COMMODITY EXCHANGE
* Offset profit and loss in market against normal business income.
.
JOSEPH MASSEY, DEPUTY MANAGING DIRECTOR, MCX LTD.
* Offset speculative profits from derivatives against normal business
income.
.
ANJANI SINHA, CEO, NATIONAL SPOT EXCHANGE
* Formulation national policy on agricultural marketing reforms.
.
SUNIL RAMRAKHIANI, CEO, WAY2WEALTH BROKERS PVT. LTD.
* Encourage participation of banks and mutual funds in commodity
market.
* Allow FIIs to participate in commodity market.
* Uniform sales tax regime across states for exchange-related
deliveries.
* Income from hedging transactions should be treated as business
income.
.
KISHORE NARNE, VICE-PRESIDENT (COMMODITY RESEARCH), ANAND RATHI
* Revoke ban on futures trading on wheat and rice.
.
.
AGRICULTURE
===========
M.S. SWAMINATHAN, FORMER CHAIRMAN, NATIONAL FARMERS' COMMISSION
* Loan waiver for very poor farmers, in areas with high suicide rates.
* Creation of a price stabilisation fund.
* Reduction in farm loan rates to 4%.
* Increase in crop loan recovery cycle to 4-5 years.
.
D.K. JOSHI, SENIOR ECONOMIST, CRISIL LTD.
* Focus on increasing farm productivity.
* Higher allocations to irrigation and farm research sectors.
* Schemes for employment generation and skill upgrade.
.
U.S. AWASTHI, MANAGING DIRECTOR, INDIAN FARMERS FERTILISER COOPERATIVE
* Higher fertiliser subsidy.
* Cess to fund fertiliser subsidy burden.
.
R.G. AGARWAL, CHAIRMAN, CROP CARE FEDERATION OF INDIA
* Cut in excise duty on pesticide.
.
B.V. MEHTA, EXECUTIVE DIRECTOR, SOLVENT EXTRACTORS' ASSOCIATION OF
INDIA
* Treat edible oils and oilseeds on par with essential commodities for
VAT.
* VAT on oilseeds should be reduced to zero or 1%.
.
S.L. JAIN, DIRECTOR GENERAL, INDIAN SUGAR MANUFACTURERS' ASSOCIATION
* Reduction in excise duty on molasses.
.
.
AUTOMOTIVE
==========
DILIP CHENOY, DIRECTOR GENERAL, SOCIETY OF INDIAN AUTOMOBILE
MANUFACTURERS
* Uniform 16% excise duty across all automobile segments.
* Measures to reduce interest rates.
.
PAWAN GOENKA, PRESIDENT, AUTOMOTIVE SECTOR, MAHINDRA & MAHINDRA LTD.
* Uniform 16% excise duty across all automobile segments.
.
H.S. GOINDI, SENIOR VICE-PRESIDENT, TVS MOTOR CO.
* Cut excise on two-wheelers to 8%.
* Measures to improve retail credit availability.
.
RAVI PISHARODY, VP, SALES & MARKETING, COMMERCIAL VEHICLES, TATA
MOTORS
* Cut in excise duty on commercial passenger vehicles.
* Duty reduction in goods carriers.
* Measures to reduce interest rates.
.
L.D. MITTAL, CHAIRMAN, SONALIKA GROUP
* Govt loans to farmers to buy tractors.
.
NEERAJ KANWAR, JOINT MANAGING DIRECTOR, APOLLO TYRES
* Correction of anomaly between import duty on natural rubber and
tyres.
.
.
OIL & GAS
=========
M.S. SRINIVASAN, SECRETARY, MINISTRY OF PETROLEUM & NATURAL GAS
* Declared goods status for natural gas, liquefied natural gas, bio-
fuels.
* Waiver of customs duty on LNG imports.
* Reduction of ad valorem excise duty on petrol, diesel to nil.
* Exemption from service tax on exploration and exploitation.
.
S.V. NARASIMHAN, DIRECTOR-FINANCE, INDIAN OIL CORP. LTD.
* Find ways to reduce impact of crude price surge on marketing
companies.
* Cut customs duty on crude imports and excise duty on petroleum
products.
* Infrastructure status for oil product pipelines.
* Rationalisation in corporate taxes.
.
R.K. GOEL, DIRECTOR FINANCE, GAIL (INDIA) LTD.
* Waiver of customs duty on LNG import for all sectors.
.
OM NARAYAN, MANAGING DIRECTOR, INDRAPRASTHA GAS LTD.
* Infrastructure status for city gas distribution pipeline.
* No value-added tax on piped natural gas.
.
T.K. ANANTH KUMAR, DIRECTOR FINANCE, OIL INDIA LTD.
* Exemption from levy of service tax on exploration and production.
* Cut in some corporate taxes--at least the surcharge on oil, gas
industry.
.
.
STEEL
=====
R.K. SHARMA, PRESIDENT, FEDERATION OF INDIAN MINERAL INDUSTRIES
* Withdrawal of export duty on iron ore.
* Complete removal of import duty on steel.
.
J. SARMA, INTERIM STEEL SECRETARY, GOVERNMENT OF INDIA
* Import duty cut for metallurgical coal, scrap metal.
* Ad valorem (value-based) export duty on iron ore.
.
N.C. MATHUR, DIRECTOR, CORPORATE AFFAIRS, JINDAL STAINLESS
* Scrap import duty on all three nickel products and steel scrap.
* Import duty on cold-rolled steel be doubled to 10%.

K.Karthik Raja
www.kences1.blogspot.com