India Union Budget 2005 - Gainers and Losers

By: EconomyWatch   Date: 30 June 2010

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Gainers

  • ACs, tyres to become cheaper as excise duty on air conditioners, tyres goes down from 24% to 16%.

  • Imported DVDs, plasma TVs and top end audio systems will be less expensive as peak custom duties go down

  • Import duties on PCs and some IT product brought down to nil but CVD is of 4%

  • Telecom equipment makers stand to gain

  • Pasteries, cakes get cheaper

  • Tea is also a gainer as Re 1 surcharge per kg of tea is gone

  • Refined vegetable oil and vanaspati price will fall due to cut in excise duty

  • Clothes will be cheaper owing to reduction customs and excise duties

  • Footwear prices, medicines prices to fall because of reduction in customs duty on machinery

  • Tax rates cut will induce more spending so boom time for producers

  • Salaried class to gain as savings upto 1 lakh will be deducted before calculating income tax. Savings will also receive a boost due to it

  • Women, senior citizen get a gentle touch in income tax slabs with exemption limit of 1.25 and 1.5 lakhs respectively

  • Rural India stands to gain under 'Bharat Nirmaan' scheme

  • Emphasis on infrastructure will keep India Inc happy

  • Textile, sugar industry received a boost

  • RBI to get more freedom on drawing up monetary policy after removal of statutory limits on CRR and SLR

  • Mumbai to become a regional financial hub is an important aspect of the budget

  • Overall Capital friendly budget

  • LPG and subsidized kerosene will gain as excise duty cut to zero

  • IIS Banglore gets a 100 crore surprise to become a world class university

  • Mobile removed from income tax criterion

  • Focus on rural children health and education

    • Losers

    • Home buyers as service tax will be levied on construction of residential complex

    • Cigarettes consumers as additional surcharge is levied on tobaccor products and pan masala

    • Consumers may have to bear the burden of hiked excise duty on iron and steel as cars home applicance may cost more

    • Rise in securities transaction tax will make stock exchange market transactions more expensive

    • Banks will have administrative nightmare with number of transactions going up following a tax on withdrawals crossing Rs 10,000

    • Those whose Electricity bills exceeds Rs 50,000 annually will have to pay income tax

    Those who left untouched and will wait for the next budget are:

    • Carmakers and aerated soft drink makers saw no relief as exice duty remain fixed at 24%

    • Pharmaceuticals industry- no special concession given on R&D expenditure

    • Insurance sector-no mention of increasing FDI in insurance sector

    • Foreign companies as no change in tax rates and surcharge for foreign companies

    • Power sector reforms and water management not given enough attention


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