Thursday, March 08, 2007

Highlights of Budget 2007-08

With the help of search engines like Google here is highlight on some sector...

Tea - Neutral
The Special Purpose Tea Fund (SPTF) mentioned in Union Budget 2007-08 had been announced before the budget. This fund will benefit the tea sector over the long term. However, budget proposals are not likely to have an impact on the tea sector.
Coffee - Positive
The Government has proposed to set up a special purpose fund for the coffee sector in the short
term. This fund will be along the lines of the Special Purpose Tea Fund (SPTF). Although no concrete details have been announced in the budget, CRISIL Research expects the fund to boost productivity in the coffee sector over the long term.

So are u game for a hot cuppa koffee?

Telecom - Neutral
The overall impact on the telecom sector is expected to be neutral. The service tax levied on the
development and supply of content for use in telecom services is expected to have no impact on
the sector, as the proposed service tax paid by content producers or aggregators would be offset
against service tax paid by subscribers. In order to streamline the present multifarious tax structure, the Department of Telecommunications has been requested to constitute a committee. However, this move is not expected to have any immediate impact on the sector. Cell phone parts, components, and accessories are exempt from the additional customs duty of 4 per cent until April 30, 2007; the exemption has been extended up to June 30, 2009.

So call me when u r free

Textiles - Marginally positive
The reduction of customs on fabrics augurs well for the garments industry. However, at the yarn stage, synthetic and rayon yarns continue to attract higher excise at 8 per cent as compared with cotton yarn, against which duty exemption can be claimed. The customs cut on polyester staple fibre and polyester filament yarn from 10 per cent to 7.5 per cent would exert downward pressure on domestic prices. Simultaneously, the customs duty on polyester feedstocks has also been reduced. While the margins of polyester manufacturers would remain intact, their absolute profits and EPS would decline. Furthermore, lower polyester prices will also exert marginal pressure on the prices of cotton yarn, primarily coarser counts.

Does that mean i can shop more of cloths this birthday?

Roads - Neutral
There has been a marginal increase in allocations for the National Highway Development Programme (NHDP) from Rs 99.45 billion in 2006-07 to Rs 106.67 billion. Allocations for rural roads are expected to increase by around Rs 40 billion, which is expected to come through the separate window under Rural Infrastructure Development Fund (RIDF). The budget has also made allocations for other ongoing road programmes. However, no significant policies or new programmes have been announced that would significantly bolster the prospects of the sector from its existing status.

But still i'm sure i'll have a bumpy ride home

Housing Marginally - negative
In the budget, there was no major announcement for the housing sector. However, the increase in the excise duty on cement is expected to push up effective raw material costs. We expect this to have a marginal impact on players, as the ability to pass on the increase at current prices may be difficult. Hence, we expect the impact to be marginally negative.

I'll have to wait one more year to buy a house (as if i was going to buy one)

Media and Entertainment - Marginally positive
The reduction in the customs duty on digital cinema infrastructure equipment imports from 12.5 per cent to 7.5 per cent will further boost the adoption of digital technology in theatres. The imposition of service tax on development and supply of content for use in advertising agency services is not expected to have any significant impact on the sector since the end-use industries already pay service tax against which this levy can be set off. Overall, the budget is marginally positive for the media and entertainment sector.

Do we get to see movies at Multiplexes at a cheaper rate?

and the list goes on.......


abha said...

maaro goli is budget ko...isme humare liye kuch nahi hai...tera nano aur two wheeler,kuch bhi sasta nahi hua,how abt gifting u a puppy?dog food is cheaper now....lolz!!

shailu4u said...

hii.. anandita.. dis is da 1st time dat i m writing comment.. I donno you much.. its hardly a week dat we started chatting wid each other. But what I feel is dat u r a good fren and we both have all da infredients of becomin gud frenz.... will write in deail later.. till den keep rocking n keep smiling dear.