Good Afternoon,
Please find below the opinion of Mr. Venkatesh Sankaran., Director and Chief Financial Officer, LANXESS India Private Limited on the Union Budget 2009. Also attached is a picture of Mr. Sankaran.
“The abolishing of the commodities transaction tax and the Fringe benefit tax was a welcome measure which has reduced the burden on industry. The budget has laid a strong emphasis on infrastructure, much needed in India today. The scope of provisions relating to weighted deduction of 150% on expenditure incurred on in-house R&D to all manufacturing businesses including those in the chemical space being extended is a good measure by the government as it signifies that the government understands the importance of innovation in manufacturing.
However, keeping in mind the allocation of funds toward the development of infrastructure, creation of employment and the eradication of poverty, it is expected that the reforms for business would not be completely positive. The maintenance of status quo in corporate taxation was disappointing, as they still continue paying close to 33.9%. The budgeted fiscal deficit touching 6.8% and no roadmap being shown to bring down the deficit over a period is a serious concern area.
Important aspects like FDI, oil and petroleum pricing which are likely to directly affect industry have not really been touched upon leaving a slight dissatisfaction with the budget on the whole. The upward revision in the minimum alternate tax (MAT) from 10 percent to 15 percent of book profits was cited as a move to bring about greater equity but is still a blow to the corporate world.
Overall it is hard to really say how the budget fares as it is a basic follow up of the interim budget already declared earlier this year.”
I hope you will be able to carry the same in your column titled ‘Budget Line’.
For any further information/query please feel free to contact me at the below mentioned numbers.
Warm Regards,
Shimoni Shah
Madison Public Relations
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