Saturday, February 26,
What does Metal Industry expect from this budget?..*
Tushar Poddar, Chief India Economist at Goldman Sachs said he expects Finance Minister Pranab Mukherjee to hike the excise duty by 2%.
Poddar further said that the direct tax norms are likely to remain the same and the he does not expect the Finance Minister to tinker with the rates. He, however does see some revenue and expenditure measures.
India’s growing fiscal deficit has been a major cause for concern and Poddar said that it was highly unlikely that deficit would come in below 5% of GDP.
2% hike in excise duty on cars & bikes.Buying and maintaining a car or a bike got a lot more expensive with the government announcing a 2% hike in excise duty, leading to an immediate near-corresponding increase in vehicle price across categories.
Hike in duty on Exports of iron ore fines to 10-15% from current level of 5%.A proposal from steel ministry on hiking export duty means FOB prices will go down and domestic prices might fall too.
Import duty on Ferro Alloys to be imposed, which will reduce the cheap import of Ferro alloys and it will be positive for domestic Ferro alloys producer.
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