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Auto sector gets relief
The budget is mildly positive. The reduction of surcharge, both forcorporates and individuals, by 3.85 per cent is welcome. The 10 per centreduction in dividend tax will boost both the stock markets and thecorporate sector. The waiver of tax on long-term capital gains, ifreinvested in primary issues, will also boost the stock market.Excise dutyrationalisation is a good step, so is the customs duty reduction and theabolition of 10 per cent SAD.The auto sector has got some relief. Importduty on secondhand cars has been hiked to 180 per cent, but this may not beenough.For the first time, the government has come out with a clear policyon manpower reduction and addressed the labour issue in the budget. Thereduction in interest rates for government borrowings through savings/PFaccounts is welcome. It will reduce cost of funds to the government. As forprivatisation and disinvestment, we will have to see how these areimplemented. The removal of restrictions in the movement of agriculturalgoods is also good, but one has to see how it is put into practice.I amdisappointed with the efforts at building infrastructure. The incentives arenot sufficient and mere tax holidays will not bring in biginvestments.(Suresh Krishna is CMD, Sundram Fasteners.) Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
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