budget- sectors which got affected
TRANSCRIPT
-
7/30/2019 Budget- Sectors Which Got Affected
1/8
Finance Minister P Chidambaram introduced the Union
Budget 2013-14 on February 28.
Below is the list of sectors which got affected because of
the Budget 2013-14.
http://www.moneycontrol.com/budget2013/http://www.moneycontrol.com/budget2013/http://www.moneycontrol.com/budget2013/http://www.moneycontrol.com/budget2013/http://www.moneycontrol.com/budget2013/http://www.moneycontrol.com/budget2013/ -
7/30/2019 Budget- Sectors Which Got Affected
2/8
AUTOS
Expectations
Levy of additional duty of Rs 80,000
Extension of Countervailing duty at 6%, customs duty 0%
Maintain customs duty of 75% on luxury vehicles
Proposals
Excise duty on SUVs raised from 27% to 30%.
Customs duty on luxury vehicles hiked to 100%.
Higher allocation to JNNURM leading to additional demand of 10,000
buses augurs well for all commercial vehicle manufacturers.
Impact
Negative for M&M and Tata Motors. Higher allocation to JNNURMpositive for all commercial vehicle manufacturers.
-
7/30/2019 Budget- Sectors Which Got Affected
3/8
FMCG
Expectations
Increase in excise duty on cigarettes.
Expect the general excise duty rate to be maintained at 12%.
Clarity on implementation and timelines of GST will be positive. Proposals
Specific Excise Duty on cigarettes increased by 18%.
Tax on royalty increased from 10% to 25%.
Impact
Cigarette companies will pass on the increase to the customers.This could marginally impact volume growth.
-
7/30/2019 Budget- Sectors Which Got Affected
4/8
OIL and GAS
Expectations
NELP blocks will be cleared.
Shale gas exploration policy may be formulated.
New oil and gas exploration policy will be formulated on revenue
sharing.
Proposals
Import duty on crude oil might be re-imposed.
Cess on crude oil production might be increased from current levels ofRs 4,500/MT.
Removal of 5% customs duty on LNG and natural gas.
Impact
Positive for the upstream companies like Reliance, ONGC.
-
7/30/2019 Budget- Sectors Which Got Affected
5/8
PHARMA
Expectations
Exempt all life-saving medicines from proposed GST.
Increase the list of life-saving drugs to 5% concessional dutyNew oil and gas exploration policy will be formulated on
revenue sharing. Proposals
Royalty/technical fees paid to NRIs increased to 25%.
To allot Rs 37333 crore for healthcare, family welfare in FY14.
Impact
Higher allocation is positive for the sector. Increase in royaltyfees marginally negative for Ranbaxy.
-
7/30/2019 Budget- Sectors Which Got Affected
6/8
BANKS/FINANCIALS
Expectations
Expects capital infusion of around Rs 20,000 crore.
Easing of investment norms, deepening of bond markets.
Reduction in STT.
Proposals
Extension of 4% farm loans to private banks.
Additional deduction of Rs 1 lakh interest on housing loans of up toRs25 lakh.
Reduction in STT. Introduction of commodity transaction tax on non-agri contracts.
Impact
Negative for private sector banks. Positive for PSU banks. Introductionof CTT negative for broking companies.
-
7/30/2019 Budget- Sectors Which Got Affected
7/8
INFRA
Expectations
Higher allocation to infrastructure spending.
Elimination of hurdles for roads and highways.
Higher allocation to infrastructure tax free bonds.
Proposals
Constitution of a regulatory authority for road sector.
3000 km of road projects to be awarded in first 6 months of FY14.
IDFs will be encouraged to provide long-term low-cost debt.
ImpactPositive for the sector. It will boost infrastructure development in roads,ports, housing and railways.
-
7/30/2019 Budget- Sectors Which Got Affected
8/8