Fair weather for tourism

New Delhi: The government is planning to open 15 new tourist destinations and circuits. The new destinations and circuits include Agra-Mathura, Varanasi-Sarnath, Hampi, Badami-Aihole-Patadakal, Hyderabad, Bodh Gaya-Rajgir- Nalanda, Bhubaneswar-Puri-Konark, and Elephanta Caves.

While that is good news for inbound tourists, those looking to holiday abroad have reason to feel a little miffed.

The finance minister has brought international air travel (excluding economy class) and travel on cruise ships under the service tax net. But the hoteliering business is happy that the valuation for the calculation of the fringe benefit tax on tours and travel has been scaled back to 5 per cent from 20 per cent earlier. Chidambaram increased the budget for tourism from Rs 786 crore to Rs 830 crore, giving priority to development of tourist infrastructure.

Jute bags tech fund

Calcutta: The jute sector is looking forward to golden days following the finance minister's commitment to set up the National Jute Board and create a jute technology mission fund from 2006-07.

Industry leaders expressed a sense of relief for continuance of the excise duty exemption on jute mill machinery and jute products. They are also hopeful of receiving a fresh administrative impetus once the jute board is formed.

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Computers

New Delhi: The computer manufacturing industry has received a shot in the arm with the finance minister announcing greater access to funds under the viability gap funding and other instruments of infrastructure financing.

“I propose to use the existing vehicles of viability gap funding and the Indian Infrastructure Finance Company Limited to create a window to provide equity participation and/or viability gap funding to the new ventures,” said the finance minister.

Oil firms

New Delhi: ONGC will take a hit of Rs 1,890 crore on the 27 million tonnes of crude that it produces, while OIL will have to cough up an extra Rs 245 crore due to the Rs 700 per tonne increase in cess on crude oil introduced in today's budget. IOC, BPCL and HPCL will get some respite as Chidambaram has extended the ‘declared goods’ status for LPG supplied for domestic use. Cooking gas will now attract a uniform central sales tax of 4 per cent.

Gems & jewellery

New Delhi: The government today decided to constitute an expert body to study the potential of the gems and jewellery industry. The body will study the prevalent taxation practices in India and abroad and make its recommendations, Chidambaram said today. This announcement will be welcomed by non-resident Indians who are looking to India as a place for future expansion and growth, an official said.

Vanaspati

Calcutta: The government raised the customs duty on vanaspati to 80 per cent from 30 per cent. The increased rate is also applicable to crude palm oil. But the industry, which operates at just about 20-25 per cent capacity, does not expect its fortunes to change as import of vanaspati from Nepal and Sri Lanka at zero duty has captured about 35 per cent of the market. Import from other countries, where the customs duty is applicable, is insignificant

Semi-conductor

New Delhi: India’s dream of manufacturing semi-conductors and other high-tech IT products could well become a reality, with the IT ministry set to announce a policy shortly.

Condensed milk, ice cream, pasta and yeast exempted; duty on ready-to-eat packaged foods and instant food mixes, like dosa and idli mixes, cut to 8%