Union Budget 2005-06 - VAT to eliminate cascading effect of sales tax
28 Feb '05
2 min read
VAT to eliminate cascading effect of sales tax Pension scheme to be extended to unorganised sector Processing sector to gain on 10% capital subsidy India infrastructure borrowing limit Rs 100 bln next FY
Corporate tax for domestic companies to be 30 % with 10% surcharge No change in the prices of branded jewellery – unbranded to cost less To allow MFs to launch exchange traded gold funds Double-digit capital goods sector growth sign of capacity expansion across industries Manufacturing growth investment-led and even Govt to revise base year for WPI from 1993-94 to a more recent year
Need to step up investment, export demand
Need to hike FDI caps in coal mining, insurance, retail - Demand has been consumer-led so far
Exports to rise $15000 crore by FY09
To further liberalise in trade policy, promote exports Opportunities in mining, trade and pension sector for FDI VAT to eliminate cascading effect of sales tax
Govt delivered on promise to accelerate foreign trade Bharat Nirman to be conceived as Business Plan with six components – irrigation, road etc Ministry of Agriculture to prepare road map, housing, telecom – infrastructure in short Rs 4750 crores for improving water quality Industrial sector output 8.9% and manufacturing sector growth at 6.9% Industrial sector will generate 70 lakhs jobs Business confidence has been restored: FM 2004-05 GDP growth seen at 6.9% vs 8.5% yearago ago NCMP proposes to provide addl sum of Rs 25000 cr in the next year
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