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| Budget 2006 at a glance news |
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| 28 February 2006 |
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- Income tax rates unchanged
- No new tax proposals
- Fringe benefit tax stays
- Fiscal deficit to 3.8 per cent of GDP next year from an estimated 4.1 per cent this year
- Tax benefits for infra projects extended till Mar 09 to boost infrastructure sector
- Excise hike on cigarettes by 5 per cent, negative for tobacco companies
- Reduction in duty on paper positive for paper industry
- Excise cut on packaged food, good for food product manufacturing company
- Import duty cut on non-ferrous, bad for aluminium companies
- Excise cut on anti AIDS, cancer drugs; positive for pharma companies
- Restore customs duty on steel - positive for steel companies
- Higher defence outlay to benefit telecom equipment manufacturers
- Focus on non-conventional energy positive for companies using non-conventional sources
- Excise duty on footwear reduced from 16 per centto 8 per cent positive for footwear companies
- 4,000 MW power projects to benefit power companies
- Development of 15 tourist spots positive for hotels and resorts
- Focus on road projects to help cement companies
- Build/operate corridors positive for construction companies
- More PPP to be added for road projects positive for road construction companies
- Deblocking of coal reserves good for power generation companies
- Allocation of four mega projects by 2006 good for power generation companies
- Addition of 15,000 MW capacity by 2007 is a positive for power stocks
- Extension of tax holiday deadline to benefit power companies
- Imposition of excise duty on computers @ 12 per cent likely to hit the sector
- Rs1,500 crore outlay for telecom to benefit telecom companies
- Imposition of excise duty @ 8 per cent on packaged software negative for IT
- Higher textile upgradation fund positive for textile sector
- 2 per cent credit on farm loans positive for bank credit quality
- Thrust on farm sector positive for fertiliser companies
- Priority status to food processing positive for food processing companies
- Sops for apparel parks to benefit textile companies
- Rs 10,500 crore to telecom sector to increase connectivity
- Excise duty on small cars reduced to 16 per cent from 24 per cent
- Excise duty on manmade fibre reduced from 16 to 8 per cent
- Customs on life saving drugs reduced from 15 to 5 per cent
- Customs on alloy and steel reduced from 10 to 7.5 per cent
- Higher farm credit adverse in long-term for banks
- Special tea fund positive for tea
- Tax rationlisation for gems and jewellery to boost exports
- Rural agri and financing focus positive for auto sector
- More FDI in infrastructure to benefit cement, power, steel
- Higher TUF allocation to benefit textile sector
- Focus on tourism to help hospitality sector
- Refinery sector boost will promote FDI
- Policy rationalisation to benefit telecom players
- Focus on tourism to help hospitality sector
- Thrust industries: textile, food processing, etc.
- Software packages to be costlier by 5.42 per cent due to excise duty
- Effective FBT rate on hospitality reduced to 1.68 per cent from 6.73 per cent
- Power sector to get extended benefit under section 80IA
- Duty cut on naphtha, polymers bad for petrochemical sector
- Free sample exclusion from FBT to benefit pharma companies
- Increase in cess on crude to hit oil exploration companies
- Cut in excise duty on alloy steel; positive for auto, auto ancillaries companies
- Customs duty cut for pipelines positive for oil companies
- Increase in services tax to impact telecom companies
- Small cars to be cheaper by about Rs15,000 to Rs40,000 positive for auto sector
- Imports to be expensive for service sector; no credit for CVD negative for service
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