Union Budget- 2014-15 - Incentives to boost investment

In order to give a fillip to the manufacturing sector, the Finance Minister has extended the benefit of investment allowance@15% of investment made in excess of Rs.25 crore in any year in new plant and machinery. This proposal of the Finance Minister, considering ICAI's suggestion in its Post-budget Memorandum 2013 relating to reduction of limit of investment as well as increase in time limit, will, no doubt, go a long way in incentivizing small entrepreneurs. Further, the extension of investment linked deduction to two new sectors, namely, slurry pipelines for the transportation of iron ore, and semi-conductor wafer fabrication manufacturing units is yet another positive measure to boost investment in these two significant sectors.

The proposal to extend the terminal date for availing 10 year tax holiday to the undertakings which begin generation, distribution and transmission of power by 31.03.2017 is in line with ICAI's suggestion. This will help ensure stability in the Government's policy to help the investors better plan their investments.

The proposal to reduce basic customs duty on specified inputs for manufacture will encourage domestic manufacture as also address the issue of inverted duties. Further, the proposal to reduce the basic customs duty on reformate, ethane, propane etc. would also go to boost new investment and capacity addition in the chemicals and petrochemicals sector.

Furthermore, to provide a fillip to the capital goods, consumer durables and automobile sectors, the excise duty concessions have been extended beyond 30th June 2014 for a period of 6 months up to 31st December 2014.

With all these measures, it can be hoped that the industry will show positive results in the days to come.

Post a Comment


Get free daily updates via Email

Get all latest content delivered straight to your inbox.