Story in the brown briefcase

Lots of hopes are there from the movie “The Financial budget of 2013-2014” releasing on 28^th feb 2013, directed by Palaniappan Chidambaram, our dear finance minister.

 I hope they will take care of the following points:-

1.           Curbing the revenue deficit ( Difference between recurring incomes which include taxable and non-taxable receipt and the expenses like salary ,asset-creation, maintaining the judiciary system, public utilities system)
2.            Curbing the inflation and controlling the account deficit (spending more foreign exchange than we earn) and at the same time taming the revenue deficit too.
3.             Inclusion of DTC ( Direct TAX code) – simple transparent and non-discriminatory  system of taxing
4.             Increased investment in infrastructure which will again lead to asset-creation expenditure of government.
5.              By raising revenue and Cutting expenditure trying to contain wide fiscal deficit.
6.               Taxes should be raised however instead of raising tax rates; no. of people paying taxes should be increased.
7.                Tax-exemption and taxing of “super-rich” should be redefined.
8.                By playing with excise duty ,revenue can be increase however within the controlled inflationary impact
9.                 Subsidies should be trimmed gradually and money should be transferred to the “needy” through Public welfare system on products like fuel and fertilizer.
10. .            GST- Group Service tax – It should be implemented with increased area of service tax.

People will take some time however eventually they will comply with it.

Eyes will be also on “DIESEL”, the main villain of the market.

Nowadays where smalls car are getting relaxation of excise slab of 12 %, at the same time SUVs and SEDANs are getting whipped by 25% and 27% of excise rate respectively.  So after getting a beating in all the previous budgets, Society of Indian automobile will look for some hope this time and in that too the story is more different for DIESEL cars.

As diesel prices are going to be increase in gradually manner, diesel car manufacturers are hoping for no increase in tax on diesel car.

Fun Fact: - only 2 % of total diesel consumption is used by private cars and taxis so it would be wrong to imagine that large CARS and SEDANS are using subsidized diesel and thus should be levied more.

Also SIAM is thinking of protecting the commercial vehicle segment from cheaper imports and gramin seva vikrams also called “jugaads” (production of medium and heavy commercial vehicles have been dropped by 19.13% in last year) by an increase in custom duty by 10% to 40 %.

Above all of that government need to keep pace of its infrastructure development programs, employment generation with the slow GDP Rate (hoping to increase in next quarter). Government should work in clearing the pending issues of land acquisition and other problems so that private investors can kick in. Government reform programs can increase the confidence and thus boost the investment in GDP Growth.