2. TOBACCO PRODUCTS.
1. Smoking is going to be costlier by
more than 15%, with the budget
increasing taxes on regular-
sized cigarettes and cigars by
18%.
2. As per industry estimates, while
cigarettes contribute nearly 75% of
the tax revenues generated by the
tobacco sector, it accounts for less
than 15% of tobacco consumption
in the country.
3. SUV’S,MOBILE PHONE AND SET TOP BOX.
1. Excise duty on SUVs would be increased from 27 to 30
percent, but added that excise duty would not apply to SUVs
registered as taxies.
2. Duty on mobile phones priced above Rs. 2000, he said, has
been raised to six percent from the current one percent.
3. Custom duty on Set Top Boxes increased from 5 to 10
percent.
4. GOLD IMPORT DUTY AND TAXES SPARED.
1.To the surprise of many finance minister in his budget spares
the import duty on gold .
2.And no more taxes were imposed on gold import.
3.Though prior to budget import duties were increased from 4 to
6 percent for gold in the month of january.
5. TAXING THE SUPER RICH.
1. Giving small relief to income tax payers, Finance Minister
announced a credit of Rs 2,000 for persons with income up to
Rs 5 lakh.
2. In order to generate more tax revenue, the Union Budget has
decided to increase the tax liability of the rich by levying a
surcharge of 10% on taxable income that exceeds Rs.1 crore.
This one-time surcharge, which is applicable only for the
assessment year 2014-2015, will be in addition to the
education cess of 3% that is paid on total income-tax.
3. An additional surcharge of 10% is likely to impact only about
42,800 taxpayers, who are currently earning an annual
income above Rs.1 crore.
6. UNCHANGED TAX SLAP VEXES MANY.
Income Range
General
(non-senior
citizens)
Category
Women (Below 60 years of
age)
(This category is abolished
from this year and is thus is
same as that of General
Category
Senior Citizens
(Men and Women
above 60 years of
age), but below 80
years
Very Senior
Citizens (Men
and Women
above 80 years
of age)
Upto Rs. 2,00,000 Nil Nil Nil Nil
Rs. 2,00,001 to Rs. 2,50,000 10% 10% Nil Nil
Rs. 2,50,001 to Rs. 5,00,000 10% 10% 10% Nil
Rs. 5,00,001 to Rs. 10,00,000 20% 20% 20% 20%
Above Rs. 10,00,000 30% 30% 30% 30%
7. AVIATION INDUSTRY.
Among the many things that this industry asked the government look
into, the following emerges as the most important ones:
1. a) Declaring Jet fuel as a notified commodity so that the taxes are
considerably reduced – from as high as 26 per cent to 4 per cent.
The price of Jet Fuel or ATF varies between states since it is subject
to Sales Tax and Sales tax is a State subject under the Indian
Constitution.
2. b) Doing away with Service tax in tour and trade. Tours and
Tourism attracts service tax of 12.5 per cent. And the Industry was of
the opinion that this was hurting the tourism industry.
3. c) Promoting regional connectivity by developing airport sin Tier-
II and Tier III cities.
4. d) Relief to MRO (Maintenance, Repair and Overhaul) Services in
Tax.
8. AVIATION INDUSTRY.
The budget has not addressed any of the above except for a
minor correction in the duty- free period for import of spares and
test equipment for MRO. The budget has increased the time
period for consumption or installation of parts and testing
equipments imported for maintenance, repair and MRO of
aircrafts by units engaged in such activities form the existing
three months to a year.
9. AGRICULTURE SECTOR.
1. For a fast track growth of agriculture, which showed 1.8% growth this
year despite bad monsoon, the total plan outlay for agriculture has
been increased by 22 per cent from Rs Rs 20,208 crore to 27,049
crore. This will support the new initiatives announced in the budget
besides backing the existing programmes which have resulted into
record food grain production this year.
2. "Agriculture contribute 14.1% in the total GDP but still more than
58% of the population rely on farm for livelihood. This booster will
help agriculture grow and attain the targeted growth rate of 4%.
10. MANUFACTURING SECTOR.
1. To spur local electronics manufacturing, Finance Minister P
Chidambaram offered sops to chip makers to set up base in
India. The industry, though, considered the act a good start
but far from sufficient.
2. .While presenting the Union Budget for 2013-
14, Chidambaram said the Indian government will waive
customs duty for plants and machinery in the semiconductor
sector.
3. While India is home to semi-conductor designing, very little
manufacturing is done in the country. The Indian
semiconductor design market is expected to grow to $14.5
billion (Rs 78,200 crore) in 2015
11. SCIENCE AND TECHNOLOGY.
1. The government announced setting up of a Rs 2,000-crore
fund to help encourage and finance such products. Presenting
the General Budget in Lok Sabha, Finance Minister said that
Ministry of Science and Technology, Ministry of Finance and
Principal Scientific Advisor to the Government have identified
a few amazing science and technology innovations.
He said the government has decided to fund organisations
that will scale-up and make these products available to the
people.
12. IT MODERNISATION.
1.Government has allocated Rs 532 crore for IT Modernisation
project of Post offices.
2."Post offices will become part of the core banking solution and
offer real time banking services. I propose to provide Rs 532
crore for the project in 2013-14," Finance Minister P
Chidambaram said while presenting the Budget proposals for the
next fiscal in Parliament.