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Budget-2012 and Business, Industries and Tax and Common Man.

The finance minister quoted Shakespeare's Hamlet before starting the second part of his budget speech.  A long monotonous speech had a humorous pause albeit a very small one. To quote him "The life of Finance Minister is not easy.  Various players, including policy makers, politicians, agriculturists and business houses, participate in the making of the economy.

High importance has been given to Agriculture and ailed businesses and also power sector.

Securities Transaction tax has been reduce by 20% to 0.1%

The cruel part beings...
Service tax will attain adulthood the fiscal year (it has been in existence since 17.5 year as of today), and has been made to grow.  The Finance Minister has done a "Honey, I grew up the kids" by widening the tax base.  He has also increased the rate of service tax rates to 12% from the existing 10%  Apart from the hike in the standard rate, Mr. Finance minister has also increased the merit rate from 5% to 6%.

The Finance Minister has also increased the duty on large cars from 22% to 24% and for some cares to 27% and valorem.  This will effect the luxury brands like Audi BMW etc.

Initiatives for specific sectors of business a quick take

Agriculture - Overall a lot of positive points to take away.

Infrastructure - Multiple exemption for fuels like NG, LNG and uranium.

Mining - support for surveying and prospecting

Railway - Impetus  for boosting safety and service delivery.

Road industry - Exemptions given for road construction equipments

Civil aviation - Most positive things

Manufacturing - Proposals with the intention of cost reduction for raw materials and inputs and capital cost.

Textile - Positive proposals to improve modernization.

Branded retail - Taxes as a component of Retail sale price to come down by 0.9%

Bicycle - Custom duty rose to 30% for cycle and 20% for parts - negative effect on manufacturers depending on imports.

Health and Nutrition - Positive measures by reducing/removing customs duty for drugs and equipment now cruel or how kind the budget truly is will be known once we analyses the entire fiance bill.

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