There is a lot of expectation from the finance minister who would be presenting the first budget since the UPA was elected to power and also is a budget after the recession tide has swept over. Here are some expectations from the industry from the government...
Expectations:
• A strong demand is being made for not implementing the Palkhi committee recommendation of increasing the excise duty on diesel engines.
• There should be an increase made in import duties on components, especially in secondary market, essentially to insulate from the impact of low-cost components from China flooding the market.
• Tax exemption zones with concessional/ nil duties should be set up, especially for component manufacture to again increase the competitiveness of local component manufacturing industry.
• As the future lies in green technology, there should be a reduction in levies for hybrid vehicles.
• Sops to encourage research and development in new technologies like those for hybrid vehicles, low-emission vehicles etc.
• Tax benefits for interest paid on loans for purchase of motor vehicles.
