While the country's largest car maker, Maruti Suzuki India, said its car will become costly by two per cent, Hyundai Motor India said it will result in a price rise of Rs 6,500-25,000 on average.
Extend tax holiday for refineries in private sectors, reduce excise duty on Naphtha from 16%, exempt excise duty for captive consumption of intermediate products within the refinery for manufacture of exempted products.
The windfall taxes on domestic crude oil production and fuel exports will generate close to $12 billion (Rs 94,800 crore) for the government in the remainder of the current fiscal while trimming profits of firms such as Reliance Industries Ltd and ONGC, Moody's Investors Service said Tuesday. On July 1, the government imposed windfall gain taxes on the export of petrol, diesel and aviation turbine fuel (ATF), and on the domestic production of crude oil. It has also mandated exporters to meet the requirements of the domestic market first.
Finance Minister Pranab Mukherjee also said that the excise duty on cement will be reduced to 8 per cent from 10 per cent, while service tax will be cut from 12 per cent to 10 per cent.
Four per cent countervailing customs duty on components for mobile phone manufacturing exempted.
The previous best selling year was 2010 when Maruti managed to sell around 10.6 lakh (1.06 million) units.
Govt unlikely to cut excise duties to compensate for higher global prices, say analysts.
International oil prices surged close to $100 a barrel on Tuesday after Russian President Vladimir Putin sent troops into Ukraine, but petrol and diesel prices in India continue to be on freeze and are expected to rise once assembly elections in states like Uttar Pradesh end. Amid fears of supplies being disrupted because of Russian aggression, the price of futures contract for Brent crude oil with April delivery on London's ICE rose by 4.18 per cent to $99.38 per barrel on Tuesday morning, before paring some gains to settle just above $98. The last time Brent exceeded $99 per barrel was in September 2014. Russia makes up for a third of Europe's natural gas and about 10 per cent of global oil production.
Over 300 life-saving medicines may become cheaper by at least 25 per cent, if the finance ministry considers a proposal by its chemicals and fertilisers counterpart to provide customs and excise duty waivers on all drugs that are part of the National List of Essential Medicines. The chemicals and fertilisers ministry proposal has been supported by pharma companies, who have also agreed to pass on the benefits of such waivers by slashing retail prices.
Move could fetch the exchequer Rs 14,000 cr
Cars and two-wheelers attract 28% GST and a cess in the range of 3-22%, taking the effective tax rate to up to 50%.
The government has chosen to profiteer off people's misery and suffering, Gandhi said.
West Bengal government said on Wednesday it would consider reduction in taxes on petrol and diesel only if the Centre reduced excise duty on these products.
Excise duty reductions will help lower prices and stimulate demand for 2&3 wheelers and small cars
Hyundai Motor India and General Motors have announced cuts in prices of their small cars, following the finance minister's announcement of excise duty reduction on small cars
Balakrishnan said Nasscom had predicted that impact on jobs due to non-extension of STPI scheme might result in loss of 400,000 jobs in three to four years.
Union budget was mildly for cable broadcasting industry and DTH.
The GST Council is scheduled to meet next on November 10 and may consider lowering tax rates on a host of goods such as handmade furniture, plastic products and daily use items like shampoo.
Sugar mills may get some relief from the government following a proposal to raise the interest rate subsidy on loans against excise duty paid by the mills during the last and current financial years.
Petrol will cost less than Rs 18 a litre but for the duties levied by central and state governments, Petroleum Minister Mani Shankar Aiyar said on Tuesday.
For every rupee in the government coffer, 58 paise will come from direct and indirect taxes, 35 paise from borrowings and other liabilities, 5 paise from non-tax revenue like disinvestment and 2 paise from non-debt capital receipts, according to the Budget documents for 2022-23. According to the Union Budget 2022-23 presented in Parliament by Finance Minister Nirmala Sitharaman on Tuesday, goods and services tax will contribute 16 paise in every rupee revenue, while corporation tax will contribute 15 paise to each rupee earned. The government is also looking to earn 7 paise for every rupee from Union excise duty and 5 paise from customs duty. Income tax will yield 15 paise to every rupee collection.
Indian Steel Alliance has offered an olive branch to the government saying that steel makers will reduce steel prices provided excise duty on the alloy was brought down to a reasonable level and the same will be passed on to consumers. It suggested that the government should lower excise duty on the alloy to about 6 per cent from the current 12 per cent. It said the govt also has to address the issue of rising iron ore prices and allocating captive ore mines to steel makers.
Over 50 pharmaceutical companies have scaled down operations in Maharashtra and Gujarat and are moving out to states like Uttaranchal and Himachal Pradesh following steep hike in excise duty in the Union Budget.
The government is mulling a marginal hike in petrol and diesel price along with an excise duty cut on auto fuels to cut the Rs 7,840 crore (Rs 78.40 billion) loss public sector oil firms are incurring every month on selling fuel below cost.
Since Hyundai has developed its 'small cars' based on the current definition of 4,000 mm, it could lose out on excise benefit if the length were to be altered to 3,800 mm as per the auto policy.
Under pressure from textile industry for more concessions, government on Thursday announced more tax sops including raising of excise duty exemption limits for powerloom weavers and readymade garments.
Whole price index inflation will touch zero per cent by March end 2009, on the back of 2 per cent excise duty cut, a 7 per cent cut in ATF prices and a strong base effect," Azis Bank said in a note. The report further said that a revival in demand is unlikely to be so strong and inflation might be negative in April 2009.
Petroleum minister Mani Shankar Aiyar on Wednesday ruled out hiking petrol and diesel prices in step with the firming up of international oil prices and the increase in excise duties.
The car will adhere to the small car norms as specified by the union budget and thereby will benefit from the 16 per cent excise duty.
Highlights of the Union Budget 2024-25 presented by Finance Minister Nirmala Sitharaman in Lok Sabha on Tuesday.
India will raise its import duty on sugar to 40 percent from 15 percent, as the government tries to revive business at mills that owe farmers around $1.84 billion, the food minister said on Monday.
The government has fixed the target of indirect tax collection, comprising customs, excise and service tax, at Rs 5.65 lakh crore for 2013-14.
As the excise duty cut for small cars spurred demand, market leader Maruti Udyog Ltd on Monday reported a 15.7 per cent increase in total sales at 63,196 units in March
With summer almost here, Hindustan Lever on Tuesday claimed that it was ahead of Amul in the ice-cream market and said it will further consolidate its position with the launch of five new flavours.
In a major boost to the automobile industry, the finance minister on Tuesday cut the excise duty on small cars to 16%.
Dell on Wednesday announced a six per cent cut in list prices of its desktop systems, notebooks and workstations with immediate effect following the removal of excise duties on computers in the Union Budget.
The government has extended excise duty concessions beyond 30th June 2014 for a period of 6 months up to 31st December 2014.
The ED said its investigation also revealed that from 2019 to 2022, the sale of 'unaccounted illicit' liquor was almost 30-40 per cent of the total liquor sale in the state.
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