The upcoming Union Budget is expected to be one of the
most austere ones seen in recent times. Here's a sector-wise estimate of
products and services that could become dearer or cheaper.
By: Shruti Malhotra
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Source: Research reports by brokerage firms including Axis Capital, Deutsche Bank, Morgan Stanley
AUTOMOBILES
May see increase in excise duties on large diesel passenger vehicles
CEMENT
Excise duty structure rejig may increase net duty paid. Not so much of good news for cement companies.
CONSUMER
- Companies in the sector want a nationwide goods and services tax
- GST can reduce cascading taxes and decrease price differential with low cost unorganized players
METALS
Steel prices could go up as the industry expects a hike in the
import duty. This could hurt industries like automobile and
construction.
OIL & GAS
- Diesel prices could be deregulated. Like petrol, diesel would eventually be sold for market rates.
- Government may bring back customs duty on crude oil
- The Budget is expected to clarify how much state-owned oil companies like HPCL, IOC would share for subsidies.
- Clarity on domestic natural gas pricing
FINANCIAL SERVICES
- Any increase in government borrowing program could harden interest rates
- Industry seeks full tax deductibility on non-performing assets provisions
- Expects government to put money into public sector banks
- Insurance Bill: Increase in FDI limit to 49%
.JPG)
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