SAJJAD PURVEZ - Reduction of surcharge to leave more funds with corporate

Published on Mon, Feb 28, 2011 at 18:29   |  Updated at Mon, Feb 28, 2011 at 19:56   |  Source : Moneycontrol.com

SP MEDIA 

Budget reactions from Sanjay Bhatia – MD, Hindustan Tin Works.

“It is indeed heartening to note that the projected GDP growth for 2011-12 would be between 8.75% & 9.2%. This means current growth trends will not only continue but will also accelerate. This would also give a demand push for FMCG sector as well as Packaging sector.

On Direct Taxes, reduction of surcharge from 7.5% to 5% is indeed welcome as it would leave more funds with the corporate sector for re-investment.

Some of the measures in Indirect Taxes like announcement of firm steps in bringing GST e.g constitutional amendment, draft model legislation, strengthening IT infrastructure etc., retention of peak rate of custom duty at 10% are steps in the right direction. However, increase in the Indirect tax to the extent of about Rs. 11,000 cr would be inflationary and MAT on the units in SEZ would affect their viability adversely.

The Finance Minister has also not announced any firm date for bringing about GST.”