India Inc's wish-list Vs FM's reality

Here's a wrap up of the wish list versus what actually took place in the Budget 2007.While, India Inc wanted customs duty rate to be reduced from the peak rate of 12.5% to 10%, the peak rate of customs duty reduced to 10% with few exceptions. Thus the impact is positive.
Automobile: Expectation: This sector wanted excise duty rate across passenger vehicles – passenger cars (excluding small cars) and UVs (6-12 seater) to be reduced to 16% from the existing 24.5% duty.
Reality: No change took place. Thus the impact is neutral.
Cement: Expectation: This sector wanted specific excise duty on cement to be reduced from Rs 408/tonne to Rs 300-350/tonne.Reality: Excise duty has been reduced from Rs. 400 per tone to Rs. 350 per tone for cement of declared retail sale price not exceeding Rs 190 per 50 kg. bag or per tone retail sale price equivalent not exceeding Rs 3800. Thus positive for regions where prices are below Rs 190 per 50 kg bag. However, excise duty has been increased from Rs 400 per tone to Rs. 600 per tone for cement of declared retail sale price exceeding Rs. 190 per 50 kg bag or per tone retail sale price equivalent exceeding Rs. 3800.Thus negative for regions where prices are above Rs 190 per 50 kg bag.
FMCG: Expectation: Sector wanted excise duty on ready to eat packaged food and instant mixes to become zero from 8%.Reality: Excise duty has been fully exempted on food mixes (including instant food mixes)Thus the impact is positive.
IT: Expectation: The sector wanted excise duty on packaged software to be withdrawn / reduced.
Reality: There has been no change.Thus the impact is neutral.
Media & Entertainment/Radio Industry: Expectation: Wanted a duty waiver and service tax holiday for five years.
Reality: There has been no change.Thus the impact is neutral.
Film Industry: Expectation: The sector wanted zero customs duty on the import of digital exhibition equipment and service tax exemptions for the digital cinema companies.
Reality: Digital Cinema Development Projects have been notified under Project Imports Scheme, under Heading 98.01. Thus the impact is positive.
Animation Industry: Expectation: Removal of service tax, scrapping sales tax on software and a ten year exemption from import duty on hardware.
Reality: No change. Thus the impact is neutral.
Metal Industry: Expectation: Excise duty should be reduced to 8% in the case of steel industry from the prevailing rate of 16%.
Reality: No change.Thus the impact is neutral.
Oil & Gas: Expectation: Custom duty on LNG import should be reduced from 5% to nil. And custom duty on crude oil should be reduced from 5% to Nil
Reality: No change. Thus the impact is neutral.
Expectation: Ad Valorem rates in the case of petrol and diesel should be reduced from 8% to 6%.
Reality: Ad Valorem rates in the case of petrol and diesel has been reduced from 8% to 6%. Thus the impact is positive.
Textiles: Expectation: Cut in excise duty on man-made fibres and yarns from 8% to 4%.
Reality: No change. Thus impact is neutral.

Courtesy: EconomicTimes
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