Finance Minister Arun Jaitley presented his Union Budget in Parliament today.
Where Jaitley Surprised
• No increase in Service Tax
• No changes to Long Term Capital Gains tax on equities
• Redressal mechanism for infrastructure projects
• Stayed with the fiscal consolidation road map
• Steps to open up the road transportation sector (abolish permit raj over time)
• Reduced corporate tax for new companies
• High net worth dividend earners (earning more than Rs 10 lakh as dividend income) to pay additional 10 percent tax
• STT increased
• Domestic tax amnesty scheme announced
Where he disappointed
• Not a bold budget
• No out of the box measures to boost growth
• Public sector investment may not be enough to kick start the investment cycle
• Just Rs 25,000 crore for PSU bank recapitalisation; seen as inadequate
• No major announcement on banking sector reforms
• Infra cess on cars (they will now turn costlier, especially diesel cars which carry a higher cess)
• No across the board reduction in corporate tax that was keenly anticipated
• Divestment target on the lower side, raises concerns about revenue mobilisation
