SUVs, luxury cars and high end motorcycles to get more expensive in this year’s budget
In his budget speech, Finance Minister P Chidambaram announced a number of changes in excise duty and import duty structures for a few segments of the market. The biggest hit obviously being the hike on all SUVs which will now attract an excise duty rate of 30 per cent as opposed to 27 per cent previously, except for SUVs bought to be used as taxis. The import duty on fully built cars has also been increased steeply from 75 per cent to 100 per cent while the import duty on motorcycles above 800cc has gone up from 60 per cent to 75 per cent.
Justifying his decision on hiking the excise duty for SUVs, Chidambaram stated that SUVs take up more space and are not as fuel efficient as other vehicles, therefore the subsequent increase. Interestingly, the industry was asking the government to slash the excise duty on SUVs from 27 per cent to 22 per cent, but matters seem to have gone the other way around. SUVs have been one of the fastest growing segments in India and while the auto industry overall has been posting a slowdown, the SUV segment has continued to draw in the numbers…
The government has been trying to make the tax laws simpler every year; however, there are numerous amendments required in the tax laws. The union budget for the FY 2013-14 will be presented before the Parliament on 28th February 2013 and the finance minister has promised many reforms expected to combat inflation along with stable tax rates. There may also be some changes in the tax slabs to provide some relief from the ever-growing inflation. Here are a handful of the number of amendments expected and predicted by analysts in the Union Budget for 2013-2014.
Click here to read more on Union Budget 2013…
2G scam: Supreme Court rejects plea against Chidambaram: In a huge relief for the Congress-led UPA government, the Supreme Court on Friday dismissed two petitions seeking a Central Bureau of Investigation (CBI) investigation against Finance Minister P Chidambaram in the 2G telecom scam.
The apex court has found the petitions not maintainable and dismissed the requests of petitioners Janata Party chief Subramanian Swamy and lawyer-activist Prashant Bhushan that Chidambaram be investigated for his alleged role in the telecom scam.Swamy had moved the court challenging the trial court order, which had held that Chidambaram did not indulge in any criminal conspiracy in the 2G scam, and refused to make him an accused in the case.According to Swamy, Chidambaram must be held responsible for the telecom scam as it took place while he was the finance minister. Read more on 2G Scam
The Union Budget 2010 has been bullish for the healthcare sector. The government increased the outlay to the healthcare sector to Rs. 22,300 crore from Rs. 19,534 crore.
Vishal Bali, CEO, Fortis Hospitals, said that in a budget that provides 46% of plan allocation for infrastructure, not finding healthcare on the agenda of the finance minister takes another year away in bridging the affordability and accessibility gap in the sector. An increase of 14% in the overall outlay for the Health Ministry does not really pave the way for a 1-2% increase in GDP spend by the government on healthcare…click here to read ahead