Budget Reactions: High-end autos cost more; export-duties cut: Khaitan & Co

Manish Mishra
Khaitan & Co

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“The Budget presented today seems to be favouring the common man as there were no dramatic changes in tax rates. However, the affluent class will have to pay more taxes for high end automobiles and mobile phone devices. Increase in excise duty on cigarettes and levy of service tax on all air conditioned restaurants would follow this trend.
There have also been extensions of custom duty incentives on electric and hybrid vehicles, machinery for leather industry, Maintenance, Repair and Overhauls (MRO) industry in aviation and pre-forms precious and semi-precious stones to boost exports.”
“Considering the present state of the textile sector, re-introduction of the zero duty regime is welcome.”
“Although the Budget announcement highlighted the intention to introduce GST law and compensate the States for CST losses through a Rs. 9000 cr fund, it is disappointing to see that there was no roadmap and time-frame laid out for implementation of GST."