Phasing out of the exemption for export earnings over a period of five years. In the current year 20% of the earnings were brought under the direct tax net.
Reduction in the basic import duties on video recording and reproducing equipment from 40% to 25%
Budget impact
The major negative would be on Zee TV, which claims taxation under Section 80HHC. The Income Tax department has argued in the past that Zee was merely selling rights to telecast the content and not selling the content (transferring the ownership). This argument could now become redundant with export earnings being taxed. The positive for the stock could be the raising of the FII limit to 40%.
