“Finance Minister P Chidambaram is likely to give duty concession to two and three wheeler segment of auto sector,” official sources said.
Duty reduction on two and three wheeler segment will serve the purpose of boosting demand cycle in manufacturing sector, industry experts feel, for, as it is two and three wheeler segment has been posting negative growth of around 7 per cent during April-December 07.
Pick up in the growth rate in overall auto segment will also boost growth rate of key manufacturing sector, which is now witnessing slowdown.
Special focus
The other segment likely to get special focus is the textile segment official sources said. The textile industry optimistic it would get adequate incentives as it is hit due to rupee appreciation.
Rupee appreciation has led into closing of many textile units and large scale unemployment of workers in the sector.
“The budget is likely to reduce basic excise duty on textile machinery and equipment and may extend exemptions enjoyed exclusively by export oriented units to other textile manufactures”, official sources said. The budget allocation under technology upgradation fund scheme and scheme for integrated textile park scheme (SITP) may also rise, official sources said.
BUDGET WISHLIST
Nitesh Shetty
MD, Nitesh Group
*Modify Industrial Park Scheme 2008 to allow for joint development by developer and landowner. Provide for exit options for the developer. Inclusion of software, consulting and data processing in the list of permitted industrial units under the scheme.
*Introduce Special Residential Zones on the lines of Special Economic Zones to ensure affordable housing in the country.
*Special residential zones are needed on the lines of SEZ Act, entailing similar approvals, the board structure, and monitoring and execution, and also similar concessions in terms of direct and indirect taxes.
*Treat real estate investment trusts (RIETS) on par with mutual funds. Mutual funds are specifically exempt from Income Tax and taxation is only at the level of the investor.
*Provide rebate or exemption of stamp duties on asset acquisitions by REITs, as is the practice in many countries.
