Budget Countdown: What's in store... 10 days to go

[K.Karthik Raja]

Budget Countdown: What's in store... 10 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...

CEMENT
======
D.D. RATHI, WHOLE-TIME DIRECTOR & CHIEF FINANCIAL OFFICER, GRASIM
INDUSTRIES
"Cement carries very huge tax burden and it is desirable if the
taxes can be brought down, including excise duty. The industry has
been extended help in the form of coal linkages in the proposed new
policy, which is a welcome move. Further help can be extended by
abolition of import duty on coal and pet coke, and allotment of
captive coal mines."
.
VINOD JUNEJA, DEPUTY MANAGING DIRECTOR, BINANI CEMENT
"We wish to see rationalisation of import duty on cement, which
can be increased to at least 5% as against nil now, this will create
level playing field for Indian cement makers. Import duty on coal can
be removed. Excise duty on cement directly or indirectly amounts to
16%, and in order to ensure sustainable growth of the sector, this
should be reduced by at least 5%. Simplify the excise structure, there
can be one slab for duty than current multiple slabs."
.
P.C. NALWAYA, MANAGING DIRECTOR, ANDHRA CEMENTS
"Countervailing duty on imported cement can be re-imposed now as
the domestic cement makers are capable of satisfying the demand. There
is no requirement of multiple excise duty structure; a flat rate can
enhance the administration for government as well as manufacturers."
.
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.
.
.
S E C T O R S C O V E R E D E A R L I E R:
**********************************************
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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 SECTOR
============
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%.