Auto industry wants relaxation of taxes in Budget 2013-14

AVIATION

The ailing aviation industry wants infrastructure status so that it can get some relief in terms of taxes and access to finances. FICCI said in its pre-budget memorandum, "Ease RBI limits on sectoral funding thereby removing the current compulsion for airport developers to raise required funds or debt from multiple banks making the process time consuming and cumbersome."

The industry body has also suggested that the government should allow import of items required for development of airports at a concessional rate of basic custom duty of 5%. Some of the items required for airport development are airfield crash fire tenders and other fire fighting vehicles, runway marking and pavement testing machine, aerobridges etc. Also, the apex body wants exemption from customs duty for X-ray baggage inspection system and other airport security systems.

FICCI has also recommended that the finance ministry allow private airport operators to raise funds from the market and be allowed to issue long term non taxable infrastructure bonds.

AUTOMOBILE

The auto industry's primary expectation is the relaxation of taxes. The Society of Indian Automobile Manufacturers has suggested that the government should reduce the excise duty on cars to 20%, excluding small cars. The industry body has also pointed out that the duty on 10-13 seater vehicles should be 10%.

Industry experts are hoping that the government will take measures to reduce the widening gap between the cost of petrol and diesel cars.

Analysts have suggested that the government should increase diesel prices across the country in order to boost the sale of petrol cars.

HEALTHCARE

The Confederation of Indian Industries (CII) has recommended to the government to award infrastructure status to the healthcare sector. According to the CII, in 2011-12, Pranab Mukherjee, then finance minister, had announced that capital stock in hospitals will be treated as infrastructure sub-sectors and added that detailed guidelines to this effect would be announced by the government soon, the CII has said that the guidelines should be announced at the earliest. It has also recommended that the scope of the Rashtriya Swasthya Bima Yojana (RSBY) should be extended to include the entire BPL population.

Further, Sanjay Kumar, managing director of Zimmer India, which creates personalised joint replacement technologies said that the exemption limit under Section 80D of the Income Tax Act should be increased from Rs 30,000 to Rs 60,000 for payment of health insurance premium for self and dependent family members.

AGRICULTURE

The agriculture sector needs the government to enable policy framework with attractive fiscal incentives to attract private investment in the rural economy. According to FICCI, private investment in agriculture and allied activities can provide the necessary boost to the already committed government spends and can have a multiplier effect in the rural economy.

In its pre-budget memorandum, FICCI also suggests that the government should increase investment in agriculture and allied sectors. It has requested the government to increase the funding given to institutes like ICAR and state agriculture universities.