Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Mini Budget: Highlights - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Jan 8, 2004

    Mini Budget: Highlights

    In what could be termed as a mini-budget, the Finance Minister has announced a series of excise and custom duty changes across products, providing one of the strongest signals of an early Lok Sabha poll. The government has tried to make technological products cheaper, given incentives to encourage airline travel and investment in the power sector. The minister has also tried to make life simpler for the tax payer. The following are the highlights of his announcement:

    Major custom and excise duty changes

    • Custom duty on mobile phones slashed to 5% (10% earlier)
    • Custom duty on coal cut to 15% (25% earlier)
    • Custom duty on power equipment cut to 10% (25% earlier)
    • Specified infrastructure equipment for basic telephony, cellular, Internet, V-SAT, radio paging and public mobile radio trunked services are being exempted from customs duty
    • Excise duty on computers halved to 8%. Recorded VCDs and DVDs are also being exempted from excise duty
    • Custom duty on life saving drugs and equipment cut to 5%. Also, customs duty on artificial limbs and specified rehabilitation aids is being reduced to 5%. These items will also have excise duty exemptions. Excise duty on medical, surgical, dental and veterinary furniture is being reduced from 16% to 8%.
    • Peak rate of customs duty on non-agricultural goods is being reduced from 25% to 20%
    • Special additional duty of customs (SAD) of 4% has been done away with

    Sops for Aviation industry

    • Excise duty on aviation turbine fuel halved to 8%
    • Inland air travel tax of 15% removed
    • Baggage rules liberalized, Laptops forming part of baggage exempt from import duty
    • Foreign travel tax of Rs 500 per passenger is being done away with

    Sops for power industry

    • Customs duty on T&D projects is reduced from 25% to 10%
    • Customs duty on electricity meters cut from 25% to 15%
      *All the aforesaid changes will take effect from January 9, 2004

    Direct Tax initiatives (with effect for April 1, 2004)

    • Employees with salary income up to Rs 150,000 per annum need not file an income tax return. Salary certificate furnished by employer to the IT department to be treated as return.
    • Pensioners to be exempt from the purview of one-by-six scheme, thereby exempting pensioners who do not have taxable income, from filing returns.
    • For perquisite valuation, rates of interest for housing loans etc., to be reduced, to bring them in line with the prevailing market rates.
    • Added to the above, the ministry will also enable furnishing of paperless income-tax returns by the introduction of direct filing through Internet under digital signatures for salaried taxpayers, professionals like doctors, accountants etc.

    All in all, the government has tried to make a final bid to woo the electorate for the 2004 Lok Sabha elections. But the steps taken above are largely in the right direction.

    To read what impact these announcements could have on sectors, please click here



    Equitymaster requests your view! Post a comment on "Mini Budget: Highlights". Click here!


    More Views on News

    Insider Leaks Equitymaster Stock Picks (The 5 Minute Wrapup)

    Jul 25, 2017

    Equitymaster HQ has been infiltrated. Valuable stock ideas have been leaked. Who's responsible?

    Raymond and Other 'For Profit' Companies Who Don't Care about Shareholder Returns (The 5 Minute Wrapup)

    May 27, 2017

    What happens when minority shareholders are short-changed in the normal course of business?

    Why Commission Driven Model In Mutual Funds Should Be Eliminated... (Outside View)

    Feb 15, 2017

    PersonalFN believes SEBI has taken a step back-apparently in the admission of it going overboard with the regulations.

    This Book Changed How I Looked at the World of Man and Money (Vivek Kaul's Diary)

    Aug 24, 2016

    And here's your chance to claim a free copy of this book...

    The Developed World is Dying because of Demographics, Debt, and Deflation (Vivek Kaul's Diary)

    Aug 12, 2016

    And Why India's demographic dividend could turn out to be a doubtful debt...

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms