Here are the main sectoral expectations of brokerages from the union budget 2011.
* Increase in excise duties by 150-200 basis points
* Increase in duties/cess on diesel vehicles
Banks & Financials
* Increase in deduction from income for the amount set aside for covering bad and doubtful debts to 50 per cent from 7.5 per cent
* Banks to be allowed to issue tax-rebated infra bonds
* Raise FDI limit in insurance sector to 49 per cent from 26 per cent
* Increase in limit of refinancing from India Infrastructure Finance Commpany(IIFCL) to commercial bank loans for PPP projects in critical sectors
* Tax break on long tenor deposits
Cement
* Increase in excise rates to 12 per cent from 10 per cent
* Elimination of import duty on thermal coal, pet coke, gypsum
Consumer Goods/FMCG
* Increase in cigarette excise duty
* Increase in ad-valorem excise duty to 10 per cent from 8 per cent
* Increase in minimum alternate tax (MAT) rate
* Increase in central value added tax (CENVAT) rate and service tax to 12 per cent from 10 per cent
Capital goods
* New import duty on power equipment
Hotels
* Infrastructure status for hotels under Section 80IA
Real estate
* Extension of deadline for notifying special economic zone (SEZ) space to avail tax rebates
* Increase in tax exemption limit for home buyers
* Continuation of 1 per cent interest subvention scheme for home buyers
* Setting up of a real estate regulator
* Clarity on external commercial borrowings (ECB) for sector
Information technology
* Extension of Software Technology Parks of India Act (STPI) by at least one year
Media
* Concessions in customs duty on set-top boxes
* Concessions in customs duty on imported plates/ink
* Cut in DTH license fee by 4 per cent to 6 per cent
* Waiver of service tax on transportation of newspapers by rail and road
* Relaxation in FDI norms
Pharma and healthcare
* Increase weighted deduction on outsourced R&D to 200 per cent from 150 per cent
* Extension of weighted deduction on R&D by 5 years
* Exemption of phycisian samples from central excise duty
* Exemption of customs duty for additional medical devices and life-saving drugs
* Reduction in duty on APIs in line with formulations to 4 per cent from 10 per cent
* Extension of tax incentives for hospitals with 100 plus beds to 10 years
* Infrastructure status for healthcare sector
Power
* Extension of benefits under Section 80IA
* More funds allocation on Accelerated Power Development and Reform Programme (APDRP) and incentives to states to reform power distribution system
* Increase in coal cess
* Clarity on bidding criteria and royalty amount for allocation of coal blocks
Retail
* Allowing FDI in multi-brand retail
Metals
* Remove import duty on steel
* Levy duty on hot rolled or HR coil exports
* Increase import duty on HR coils to 10 per cent from 5 per cent
* Increase in export duty on iron ore and fines
* Reforms on iron ore and coal blocks allocation and speedier approval process for land acquisitions
Chemicals and fertilisers
* Increase in fertiliser subsidy
* Inclusion of urea in nutrient-based subsidy (NBS) scheme and price decontrol
* Increase in excise duty on chemicals to 12 per cent from 10 per cent
Oil and gas
* Reduction in customs duty on crude oil, petrol and diesel
* Reduction in excise duties on petrol/diesel
* Clarity on 7-year tax holiday for natural gas under Sec 80 IB
* Flexibility on claiming the 7-year tax holiday
* Declared goods status to natural gas
* Abolish 5% customs duty on LNG
* Exemption from service tax for exploration and production
Telecom
* Inclusion of 3G investments under section 80IA tax benefits
* Import duty on mobile handsets
Construction and infrastructure
* MAT break for infra projects for the initial period of income tax holiday
* Single window clearance system for road and power projects
* Easing ECB norms for infrastructure projects
* Infrastructure status to integrated townships and group housing development
* Increase in allocation for Jawaharlal Nehru National Urban Renewal Mission (JNNURM)
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