Moneycontrol
Feb 22, 2013 01:00 PM IST | Source: Moneycontrol.com

Budget Expectations: JK Lakshmi seeks tax free bonds, lower duties

The government should introduce tax free bonds, form infrastructure debt funds and also formulate comprehensive policy for developing public private partnership projects (PPPs) for growth of the cement industry.

 
 
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Shailendra Chouksey
 Whole Time Director, JK Lakshmi Cement


The government should introduce  tax free bonds, form infrastructure debt funds and also formulate comprehensive policy for developing public private partnership projects (PPPs) to propel industry growth.


Given the rapidly growing demand for housing from the low middle income population, there is a need to promote low cost housing. Some of the other issues which need government's immediate attention are – high duty rates, which needs to be lowered.


Cement is one of the core industry which is crucial for development of nation's infrastructure.  Somehow, this aspect has continously been ignored.


To encourage growth in cement industry, excise duty rate should be reduced from 12 percent to 6‐8 percent. In addition, the duty structure should be simplified to be either on specific rate per MT 9 metric  tonne) or on an ad‐valorem basis


It is requested to provide a level playing field; by levying basic customs duty on cement imports into India. Alternatively, import duties on goods required for manufacture of cement should be abolished and free movement be allowed without levy of duty

The industry is one of the basic and core infrastructure industries. However, unlike other similar industries/goods, cement is subjected to higher rates of taxation. It is proposed that cement be stipulated as 'Declared Goods' under section 14 of Central Sales Tax Act so that it is put on an equal footing with other core sector goods like coal, steel, crude oil, jute and cotton yarn.

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