Friday, February 22, 2013

Budget 2013: Costlier or Cheaper

As we all know the Indian Budget 2013 is getting closer and we all do have a lot of expectations. Here are few sectors or industries where you might see a change in terms of things getting Costly or cheap.

Capital Goods: The power equipments which are imported can get expensive. The depreciation rate may increase on capital expansion that allows tax savings. There will be more focus on the expenditure forecasts on Defense, Railway and Jawaharlal Nehru National Urban Renewal Mission(JNNURM).

Cement Industry: Cement industry might get a bad news as the excise duty structure may increase net duty paid.

Automobiles: As Petrol and Diesel prices are increasing in every quarter. Also there may be an increase in Excise duty on large diesel passenger vehicles.

Consumer Sector: All the companies are expecting to get a nationwide goods and service tax. There can be a reduction in cascading taxes and price differential with low cost unorganized players. Cigarettes are expected to get expensive.

Media: Here is some good news for the people who enjoys or spends there time watching Television as the government may reduce the prices of the Set top boxes.

Metals: As the import duty on the steel may increase hence expect the steel prices to increase too. Automobile and Construction sector will be directly affected with an increase in steel price.

Financial Services: There may be an increase in government borrowing program which can harden the interest rate. Financial industry are looking for full tax deductibility on non performing assets provision. Government may invest into public sector banks.

Infrastructure and Power: The Infrastructure companies have a very limited investments from the tax free bonds hence they want the limits to get increased for the same. This might help them to get more Capital from such Tax free bonds. This budget you might expect an increase in the Freight rate for the Coal industry. Cement, Steel and Power industries the one who will get a direct hit due to such increase.

Oil and Gas: Expect Diesel to be sold at the market place just like Petrol. Custom duty are likely to be back on Crude Oil. There will be transparency on how much state-owned oil companies would share for subsidies. Also there will be more clarity on Domestic Natural Gas pricing.
Real Estate: Interest on home loans limit may get increased for the Income tax deductions. The industry is looking for an infrastructure structure for affordable housing.

Telecom: The industry is looking for an infrastructure for the tower companies. Also the price of the call rates or rentals may decrease due to reduction in multiple taxes.

So finally you can see what can go costly and cheap hence plan yourself for the next Financial year be it your expenses, budget for your home, office, investments and so on. But still wait for the our Finance Minister P Chidambaram to approve the same.

Image source: http://www.a2lc.com/Portals/16856/images/trial-graphics-consultants-prepare-early-budget-costs.jpg, http://www.nationalcenter.org/KyotoTelecom.JPG, http://upload.wikimedia.org/wikipedia/commons/thumb/2/2f/Tata_Nano_im_Verkehrszentrum_des_Deutschen_Museums.JPG/220px-Tata_Nano_im_Verkehrszentrum_des_Deutschen_Museums.JPG, http://www.urscorp.com/images/markets/5/market-main-4.jpg

1 comment :

  1. Ghosh!! was planning to buy my new car but since u say that price are gonna hike then will have to replan my budget.