May 8, 2008

Post-budget analysis - BSE CD

BSE CD 4,568.85 +0.57%

May 02, 15:46

Post-budget analysis


What the Budget does

# The Finance Minister has been silent on proposals for the retail industry.

# Central Sales Tax rate being reduced from 3% to 2% from April 1, 2008.

# Customs duty being reduced on specified machinery from 7.5% to 5% to provide fillip to the manufacture of sports goods; duty also being exempted on specified raw materials for sports goods.

# Customs duty to be exempted on rough cubic zirconia and to be reduced on polished cubic zirconia from 10% to 5%, in order to encourage value addition and exports by gem and jewellery industry.

# Customs duty on rough coral being reduced from 10% to 5%.

# Threshold limit of exemption from personal income tax in the case of all assessees increased to Rs 150,000.

# Dividend tax paid by parent company allowed to be set off against the same paid by its subsidiary.

Impact on sector

# Increase in the threshold limit of exemption from personal income tax to result in a rise in disposable incomes thereby fueling growth of the retailing sector.

Impact on companies

# Rise in disposable incomes due to the increase in the threshold limit of exemption from personal income tax will benefit companies like Shoppers' Stop, Pantaloon, Trent etc.