Budget 2021 Updates: What India's electric car-makers want from Sitharaman
The Society of Manufacturers of Electric Vehicles has asked FM to either rejig the FAME II scheme or reintroduce FAME I.
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IIFCL may get Rs 5,000 crore capital support in upcoming Budget
The government is likely to infuse Rs 5,000 crore into India Infrastructure Finance Company Ltd in the upcoming Budget to boost investment in the infrastructure sector and accelerate revival of the COVID-19 hit economy, according to sources.
Farmer unions now announce plan to march towards Parliament on Budget day
Ahead of their proposed tractor parade on Republic Day, protesting farmer unions on Monday announced they will march towards Parliament from different locations on February 1 when the annual Union Budget is scheduled to be presented.
Icra warns against fiscal tightening in Budget, projects 5 pc fiscal deficit for FY22
Government may tweak customs duties on host of goods in Budget 2021
The government may tweak customs duties in the Budget next week on several goods, including furniture raw materials, copper scrap, certain chemicals, telecom equipment and rubber products, to promote domestic manufacturing and exports, sources said.
Last year, the government increased import taxes on several products such as furniture, toys, and footwear.
The government is already taking steps to boost domestic manufacturing such as introduction of production-linked incentives scheme (PLI) for several sectors including air conditioners and LED lights.
Expensive raw materials impact India's price competitiveness in the international market.
According to North Block sources
While import duties could be hiked on over 20 products such as cut and polished diamonds, rubber goods, leather garments, telecom equipment and carpet, the customs duties could be removed on select raw materials (like wood in rough, swan wood and hard board) used for furniture manufacturing and copper concentrate.
Keeping in line with Modi government's atmanirbhar theme, a tweak in custom duties could also be expected
Especially on goods like furniture raw materials, copper scrap, certain chemicals, telecom equipment and rubber products.
Last September, the government had extended the deadline for local manufacturing to be eligible for incentives under the FAME II scheme for parts like the electronic throttle for all categories of EVs till April 1, 2021, from earlier deadlines ranging from April 1, 2020, to October 1, 2020.
What else is on the EV wish-list? Reduced GST for batteries and inclusion in Swachh Bharat Mission
Currently, GST on a lithium battery is taxed at 28 per cent when sold separately, while the vehicle sold with battery is taxed at 5 per cent.
SMEV also sought extension of the phased manufacturing programme (PMP) saying COVID-19 has derailed the growth path of the industry, which has weakened the creation of the local component market.
A dedicated budget should be allocated for the 'Clean Air' campaign, which could be integrated under the Swachh Bharat mission.
A win-win solution for government and EV makers?
Imposing a notional green cess on polluting vehicles could accelerate electric mobility and also generate massive funds to reduce the burden on the government exchequer. This fund could be utilised in the frontloading of incentives to customers and bring electric two-wheelers prices down to the level of petrol two-wheelers, SMEV Director General Sohinder Gill wrote in his letter to the FM.
It's been almost 2 years of the FAME II scheme and only less than 10 per cent of its target has been achieved. We should make concerted efforts to remove the kinks that have inadvertently cropped up in Fame II.
- SMEV Director General Sohinder Gill
What is FAME II? The Rs 10,000-crore FAME-II scheme is the expanded version of FAME India I (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles)
The scheme is to be implemented over three years, with effect from April 1, 2019, for faster adoption of electric mobility and development of its manufacturing ecosystem.
Under the second phase of the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-II) scheme,
10 lakh registered electric two-wheelers with a maximum ex-factory price are eligible to avail incentive of Rs 20,000 each.
5 lakh e-rickshaws having ex-factory price of up to Rs 5 lakh are eligible for incentive of Rs 50,000 each.
An incentive of Rs 1.5 lakh given to 35,000 electric four-wheelers with an ex-factory price of up to Rs 15 lakh.
Incentive of Rs 13,000 each to 20,000 strong hybrid four-wheelers with ex-factory price of up to Rs 15 lakh.
It will support 7,090 e-buses with an incentive of up to Rs 50 lakh each having an ex-factory price of up to Rs 2 crore.
The scheme had a Rs 1,500-crore outlay in 2019-20; Rs 5,000 crore in 2020-21 and Rs 3,500 crore in 2021-22.
A week to go for the Budget, the Society of Manufacturers of Electric Vehicles has asked the Finance Minister to either rejig the FAME II scheme or reintroduce FAME I.
They say the FAME II programme, meant to promote EVs in its second avatar, has been able to achieve less than 10 per cent of its target.
Tech cos' WFH conundrum
IT cos are worried over income tax holiday due to WFH
According to experts, there is a need to clarify, whether services delivered by employees of SEZ-based IT-ITeS units, virtually from their home location, shall be eligible for income-tax holiday,
The State of Indian Economy
FM to announce a national bank for easy access to low-cost funds for infrastructure projects: Reports
Startups want a leg-up
Key demands: 1) Removing all forms of taxes (direct and indirect) on any startup company created till it reaches a revenue of Rs 500 crore, or 12 years 2) Extending the tax exemption for startup investors for a period of 12 years or till the sale or transfer of such investment, whichever is earlier 3) Allowing investors to write off unsuccessful startup investments without burdensome questions
Get set for an eventful week: 130 companies set to announce Q3 results this week, just before the budget
What FM can do for taxpayers
Maximum exemption limit for gratuity can be increased from Rs 20 lakh to Rs 25 lakh
Tax limit for contributions to NPS, EPF and the superannuation fund can be hiked
Increasing limit under Section 8C
Limit under section 80CCD(1B) could be enhanced from Rs 50,000 to Rs 1 lakh
The focus of the Budget should be to revive India’s private sector capex cycle. Crowding in investments through higher infrastructure spending financed by asset monetisation will be the key
- BOB Capital
Bazooka, machine gun or torpedo for Budget?
Whatever may be the shape of the Budget, Nirmala Sitharaman has all the factors working in her favour ahead of February 1. 1) Services sector activity up for a third straight month in December 2) Exports also regained some ground last month 3) Passenger vehicle sales jumped nearly 14 per cent 4) Demand for loans picked up from lows seen in October
With expenditures supported by strong nominal growth, optimism on tax collection and the government’s aggressive estimates for disinvestment and non-tax proceeds, we expect the fiscal deficit target to be set at 5.3 per cent of GDP in FY22
With many road projects lined up for this year including some expressways, the Highways ministry has reportedly asked FM Sitharaman for an increase of 10% in the allocation for the ministry in this budget
Last year, Centre had allocated nearly Rs 92,000 crore to the ministry
What Railways wants
The Railways reportedly wants to increase its capital expenditure by 13 per cent in FY22.
It has asked the finmin to increase its capex budget to Rs 1.8 lakh crore from Rs 1.6 lakh core
Technical analysts see the Nifty finding support at 14,200-14,300 in the week before the Union Budget which will be presented on February 1
A small correction has already been seen in Nifty where sectors like metals pharma and PSU stocks have seen a deeper cut recently. My sense is that this is enough and another decline in the market ahead of the Budget may not be seen.
- Rohit Srivastava, founder, Indiacharts.com
Finance Minister Nirmala Sitharaman may have promised India a "Budget like never before." But can she really afford to prioritize every sector that needs rescuing? And let's be honest, after the year the world has had, that list seems never-ending.
All about Budget App
The app will provide easy and quick access to Union Budget information to all stakeholders, as the Budget will be delivered in paperless form for the first time.
It will offer complete access to 14 Union Budget documents
The documents will be available after the completion of the Budget Speech by the Finance Minister
It will have English and Hindi language support
Available on both Android and iOS
Textile body seeks customs duty hike on man-made yarns in Budget
I sincerely hope the Minister increases allocations to the health sector in the 2021-22 Budget, and a major portion of this allocation must be spent to strengthen primary healthcare and improve the quality of healthcare delivery mechanism
- Dr Guru N Reddy, founder and director, Continental Hospitals
The upcoming Parliament session will be "stormy" if farmers' demand of repealing of the new agri laws is not accepted by the government: Congress' Lok Sabha chief whip Kodikunnil Suresh
Govt may slash duty on cricket bats to just 5 per cent: ET
Hike the Rs 2 lakh tax rebate on housing loan interest rates to at least Rs 5 lakh to generate healthier housing demand, most notably in affordable and mid-segment housing. The last increase in the deduction limit under Section 80C (to Rs 1.5 lakh a year) was in 2014 and an upward revision is long overdue
- Shishir Baijal
A separate annual deduction of Rs 150,000 that will provide the much-needed fillip to opt for house purchase. On the aspect of housing demand, Section 80 C tax deduction on home loan principal repayment does not provide for a focused benefit on housing
- Knight Frank India chairman and managing director Shishir Baijal
Budget wishlist: The real estate sector wants personal tax relief, tax rebate on housing, extension of interest subvention, GST waiver, infrastructure status for the realty and easing liquidity for the sector
The government may announce formulation of a dedicated policy for the toys sector to boost domestic manufacturing in the Budget next week: PTI
Indian markets have been witnessing strong momentum over the past few months on hopes of a faster economic recovery after the pandemic lockdown. Also positive global cues, sustained FII inflows and strong corporate earnings kept the sentiments high. Buzz around the upcoming Budget has also added strength to the markets. The Budget could potentially lay the foundation for a long term economic growth path.
- Hemang Jani, Head Equity Strategist at Motilal Oswal Financial Services
According to ET, second phase of Swachh Bharat Mission may be unveiled during this Budget
The first budget after Covid 19 may also see more funds for the social sector, claimed the report.
According to a latest report of The Economic Times, govt may give a big push to infrastructure sector and the ministries including housing and urban affairs, road transport and highways and shipping may see a 15-25% increase in outlay