Cash signal in spectrum auction
NEW DELHI: Budget 2012-13
estimates revenues of Rs 58,217.33 crore from the auction of 2G spectrum and broadband radiowaves as well as annual licence fee and spectrum fee. This non-tax receipt also includes one-time fee charged from mobile operators for holding more than 6.2MHz of radiowaves. For this fiscal, the government had budgeted about Rs 15,000 crore spectrum auctions, but this was not realised, as there has been no sale of airwaves in the last 12 months.
Steel prices to flare up
NEW DELHI: Increase in excise to 12 per cent as announced in the budget today will push up steel prices by up to Rs 1,000 per tonne. “The hike in excise duty rates is going to increase cost. Two per cent increase in excise duty means costs will go up by Rs 500 to Rs 1,000 per tonne. It will be passed to consumers,” Sushil Maroo, chief financial officer of Jindal Steel and Power, said. “Price increase will be decided later, it has just been announced. The extent of hike will depend on the market conditions,” Maroo said.
Bags of worry for cement
NEW DELHI: Cement may become dearer by Rs 5 per 50 kg bag in view of the budget proposal to raise excise duty to 12 per cent from 10 per cent earlier. “The hike in excise duty will push up the sales cost by Rs 5 per bag. Cement makers will obviously try to pass it on to the consumers, but their ability to do so will depend upon the condition of the market where they operate,” a prominent industry leader said. The average price of cement was around Rs 285 per bag in the country. But, since cement is largely a regionally-traded commodity, its price varies from one region to another.
It feels left out
NEW DELHI: No fresh proposals were announced for the $100-billion IT-BPO sector in the country even though the industry had requested to exempt SEZ income from minimum alternative tax. “There is no focus on putting the economy on a high growth trajectory; fiscal deficit reduction is through higher taxation rather than expenditure management; there is no road map on implementation of DTC and GST; and also issues of tax simplification, litigation (faced by IT-BPO sector) have not been addressed,” software body Nasscom said in a statement.
Highways to go a long way
NEW DELHI: Highways construction is set to get a major boost with initiatives such as permission to raise tax-free bonds and reduction in withholding tax to 5 per cent on overseas borrowings in 2012-13.