|
"For the broadcasting industry, the import of capital equipment
and set top boxes has been made easy. Customs duty has come down
and this will help companies in importing latest technology from
other countries and, thus, ultimately benefit the consumers," Chandra
observed.
But CETMA thinks otherwise. "We are very disappointed that the
Budget does not touch upon the suggestion by us on reducing the
customs duty on STBs at 10 per cent," CETMA's Suresh Khanna told
indiantelevision this evening, sounding dejected.
When asked whether he was sure there was no proposal in the Budget
that would indirectly or directly facilitate cheaper STBs for the
consumer, Khanna said: "I don't think so."
So much so that CETMA is planning to petition the information and
broadcasting ministry as also the finance ministry "at the first
available opportunity" to push for review of the government (in)decision
on STB, especially at a time when the government is pushing aggressively
the implementation of conditional access system.
"We will petition the government and hope that it would see our
point of view on making available to consumers cheap STBs," Khanna
said.
But Chandra feels that the duty reduction proposed by the finance
minister for infotech peripherals would encompass components for
STBs too that would help companies making available STBs to Indians
at a cheap rate, as has been advocated by the government from time
to time.
Though Chandra felt it was a "populist Budget", he still gave a
thumbs up signal to finance minister Jaswant Singh's first effort.
"Given the current circumstances, which the global economy is going
through, the Budget has done reasonably well. I will rate it as
6 on 10," Chandra said.
Pointing out that lots more was expected from the Budget and lots
more could have been done, Chandra said, "This is definitely a populist
budget. Politically too, the Budget was perfect with the five priorities
being stressed by the finance minister."
Chandra also differed from quite a few in the industry and saw
advantages in areas where others in the industry had had expressed
disappointment. "With the surcharge being halved from 5 per cent
to 2.5 per cent it will result in direct saving to the company.
There is no other change in the tax structure," Chandra said, adding,
"However, the removal of excise duty on recorded audio-cassettes
(and CDs) is definitely a positive move that will help in fighting
piracy and also increase sales for Zee Records."
According to Chandra, "Though service tax has been increased to
8 per cent from 5 per cent, since it is going to be covered under
VAT (value added tax), it would result in substantial savings to
companies like us."
The Budget definitely provides greater clarity with the tax losses
being now available even in case where there is change in ownership,
he said.
There has been a positive move made to enhance the primary markets
with the dividend tax being abolished. Companies would now have
to pay 4.5 per cent dividend tax on declared amount. With the Long
Term Capital Gain now being abolished on sale of listed shares bought
after 1 March 2003 it will help build market capitalisation, Chandra
observed.
In the case of taxation of individuals, Chandra said proposals
like standard deduction of Rs 20,000 and Rs 30,000, removal of surcharge
in case of income less than 850,000 a year, increase of surcharge
to 10 per cent from 5 per cent in other cases, introduction of rebate
against education expenses Rs 12,000 per child per year and enhancement
of medical reimbursement to Rs 30,000 from Rs 15,000 will lead to
increase in available cash with individuals.
Introduction of value added tax (VAT), gradually will replace sales
tax, he felt.
The reforms in taxation towards capital markets will turn into
positive inflows in the market, he said.
Finally, Chandra said, the proposal to allow private sector participation
in the development of health of sports and infrastructure is definitely
a "positive move" and will help in the overall development of human
resources.
|
