Budget to bring huge benefits to common man, Mr Arun Goyal

01 Mar '08

2 min read

Arun Goyal, CFO & Chief Executive - Strategic Planning & Execution, Abhishek Industries Limited said the Union Budget 2008-09 balanced in terms of growth and stability. The budget promises to bring huge benefits to the common man and farmers have been major beneficiaries, but it has not been able to meet the expectations of the industrial and corporate sector at large.

The exemption limit for Income Tax has been welcomed and is worth appreciating. The budget tinkered with tax slabs for individuals, but left the corporate tax structure untouched.

Enhancement in Short-term Capital Gain Tax from 10 % to 15% is not encouraging for the Capital Market, short-term investors and traders.

Increased budget allocation of 20% for the Education Sector along with the cut in excise duty rate from 12% to 8% will have a good impact on the Paper Industry.

For the Textile Industry, stricken with the rupee-dollar ratio, it has been a disappointment, but the extension of TUF scheme is a relief.

The cut in general Cenvat rate from 16% to 14% is a move in the positive direction, as it will give the necessary boost to revenues in the manufacturing sector and reduce the input cost.

The budget proves to be beneficial for individual service providers for the increase in tax exemption from 8 lacs to 10 lacs.

Though the industrial expectations were not fulfilled, holistically the budget reflects the needs of the people and is promising for the development of the country.

Abhishek Industries Limited

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