Wednesday, February 28, 2007

India: Budget 2007-08 Highlights

India's Union Budget 2007-08 Key Highlights/Summary:
  • Income tax exemption hiked by Rs 10,000.
  • Five-Year tax holiday for 2,3 & 4 Star Hotels.
  • No excise duty on instant food mixes.
  • 15 specified machinery import duty to be reduced from 7.5 % to 5%.
  • ESOPS to attract FBT.
  • MAT extended to IT companies.
  • Duty on sunflower oil down by 15%.
  • Excise duty for plywood down from 16 % to 8%.
  • Water purification devices fully exempted from excise.
  • Private importers of aircraft : 3% import duty to be levied including helicopters.
  • Tax exemption for senior citizens : Rs 1.95 lakh.
  • Income tax exemption : for women Rs 1.45 lakh.
  • Education cess : service tax now at 3%.
  • No change in corporate income tax.
  • Bank cash transaction tax : limit raised to Rs 50, 000.
  • Service tax exemption on tech buz incubators.
  • DoT to review Telecom tax structure.
  • Effective corporate tax rate at 19.5 per cent.
  • Tax exemption limit : raised to Rs 1.1 lakh.
  • Cement excise: Rs.350/tn on Rs.190/bag .
  • Excise cut on cement (till Rs 190/bag) to 350/mt.
  • Duty on mouth freshners is to be cut by 45%.
  • Excise Duty : Bio-Diesel fully exmpted.
  • Import duty : cut on medical equipments to 7.5 per cent.
  • No change in service tax rate.
  • e-filing of returns has been a success.
  • Excise duty : raised to 5% on cigarettes, tobacco.
  • 20,000 hotels more for Commonwealth Games.
  • Coking coal : exempted from customs duty
  • Losses on CST,VAT Rs 5495crore to be compensated.
  • Reduction in customs duty on Polyester & Fibre by 7.5%.
  • Centre to give Rs 1.42 lakh crore to states in '08 taxes.
  • National level goods & services tax to be introduced from Apr 1
  • Central Sales Tax : 1% cut
  • Physically-challenged : 1 lakh jobs for them.
  • Gross tax revenue : increased by 19.9%, 20% and 27.8% in first 3 years of UPA Govt.
  • UPA Govt promises tax rate to be stable.
  • SMEs : Government to encourage banks to lend SMEs.
  • Inflation between 5.2% and 5.4% in 2007.
  • Micro irrigation in Andhra Pradesh and Tamil Nadu to benefit.
  • Mumbai will become a world class financial city.
  • To study climate change Govt. to appoint committee.
  • Defence : allocation up at 96000 crore.
  • e-governence programme : Allocation raised to 719 crore.
  • Overseas investment: even allowed by individuals via MFs.
  • Rural electrification : Rs 3983 crore.
  • PAN: sole identification number for markets.
  • Weather-based crop insurance scheme.
  • Tech upgradation scheme : Allocation up from 535 to 911 crore.
  • North-East: Rs 14365 crore allocated
  • Textile parks : Allocation up from Rs 189cr to Rs 425cr.
  • Farm credit growth doubled in two years.
  • Average inflation seen between 5.2%-5.4%.
  • Tourist infrastructure : Allocation up at Rs.520 crore.
  • Women-specific programme : Rs 8795 crore.
  • National Highway Development Programme : allocation up from 9948 to 10667 crore.
  • Fertiliser sector : Rs 22452 crore subsidy.
  • For NABARD : Rs 1800 crore allocation.
  • NABARD to issue rural bonds worth 5000 crore.
  • FDI in Apr-Jan at $12.5 per cent.
  • Central PSUs to invest Rs 1.6 lakh crore in year 2007-08.
  • 7 UMPPs under review. 2 of it will be approved by July.
  • Power capacity addition needs to be boosted.
  • Social security scheme for unorganised workers.
  • Aam Aadmi Bima Yojna Scheme will be started.
  • Special funds for coffee and rubber.
  • Rs 11,000 crore for irrigation project.
  • Govt to scale up production of certified seeds.
  • Rural banking to benefit.
  • Bharat Nirman allocation up 31.6% to Rs.24600 crore.
  • Education allocation up 34.2%;school education 35%.
  • Allocation to health hiked by 21.9% to Rs 15291cr.
  • 24 lakh hectares under new irrigation projects.
  • XI Plan target of 4% Growth in agriculture sector.
  • Rs. 2800 crore for Sampurna Grameen Yojana.
  • The strategy for polio eradication is revised.
  • Rs 1290 crores proposed for polio eradication.
  • The National Rural Employment Guarantee Scheme - initial allocation Rs. 12000 crore.
  • National Aids Programme scheme will start in 2007-08.
  • 1 lac scholarship to be introduce every year.
  • National Means and Education Scheme for students above class 8.
Overall.. mixed reaction so far and 6 out of 10 rating.

1 comment:

Anonymous said...

Aam Admi

nam Aadmi

where is the VDIS promised, now that IT sleuths are catching 25000 crores from a single stud farmer and there is one MP whose assets cross 25000 crores .... where is India headin?

rgds
Vijay