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Miscellaneous
Increase in excise duties to hurt apparel retailers; Retailers and Airlines –vely impacted; Push to warehousing
and agriculture supply chain; push to textiles exports continues
Key measures
Retailing sector: Overall negative
10% excise duty on branded garments a negative for
Pantaloon, Shoppers Stop and Trent
Will translate into a ~6% price hike at a time when the
sector is struggling to pass on inflationary pressures
from cotton/ yarn prices; the MRP linked calculation
will impact discount retailers disproportionately
1% excise duty on branded jewellery: a negative for
Titan, Gitanjali and Rajesh Exports; Definition of
branded jewellery widened
Customs duty on specified gems and jewellery
manufacturing equipment cut from 10% to 5%
The tone and comments in the budget speech, with
repeated references to supply chain inefficiency and
retail prices, suggest that the government is seriously
considering FDI in retail. However, the timing may be
influenced by political considerations
Service tax on economy class air travel increased
by Rs50/ticket for domestic flights and
Rs250/ticket for international flights
Taxation on domestic business class travel has also
been increased to in line with international
Negative for the airline sector
Capital expenditure in warehousing and cold chain
is now eligible for viability gap funding and has
been classified as an infrastructure sub sector
Positive for retailers setting up warehouses
Textiles: a mixed bag
10% excise on readymade garments a negative
Cut in customs duty on raw silk from 30% to 5% and
minor cuts in man made fiber products
Excise on textiles machinery cut from 10% to 5%
Reform proposed for Agriculture Produce
Marketing Act, which regulates the mandi system
Should help improve supply chain for food retailers
AC restaurants serving liquor and hotels bought
under the service tax net
Negative for the hotel sector
Basic customs duty on carbon black feedstock and
petroleum coke reduced from 5% to 2.5%
Defence services budget increased by 12%, but
capital budget increased by 15% to Rs69bn
Positive for Bharat Electronics
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Miscellaneous
Increase in excise duties to hurt apparel retailers; Retailers and Airlines –vely impacted; Push to warehousing
and agriculture supply chain; push to textiles exports continues
Key measures
Retailing sector: Overall negative
10% excise duty on branded garments a negative for
Pantaloon, Shoppers Stop and Trent
Will translate into a ~6% price hike at a time when the
sector is struggling to pass on inflationary pressures
from cotton/ yarn prices; the MRP linked calculation
will impact discount retailers disproportionately
1% excise duty on branded jewellery: a negative for
Titan, Gitanjali and Rajesh Exports; Definition of
branded jewellery widened
Customs duty on specified gems and jewellery
manufacturing equipment cut from 10% to 5%
The tone and comments in the budget speech, with
repeated references to supply chain inefficiency and
retail prices, suggest that the government is seriously
considering FDI in retail. However, the timing may be
influenced by political considerations
Service tax on economy class air travel increased
by Rs50/ticket for domestic flights and
Rs250/ticket for international flights
Taxation on domestic business class travel has also
been increased to in line with international
Negative for the airline sector
Capital expenditure in warehousing and cold chain
is now eligible for viability gap funding and has
been classified as an infrastructure sub sector
Positive for retailers setting up warehouses
Textiles: a mixed bag
10% excise on readymade garments a negative
Cut in customs duty on raw silk from 30% to 5% and
minor cuts in man made fiber products
Excise on textiles machinery cut from 10% to 5%
Reform proposed for Agriculture Produce
Marketing Act, which regulates the mandi system
Should help improve supply chain for food retailers
AC restaurants serving liquor and hotels bought
under the service tax net
Negative for the hotel sector
Basic customs duty on carbon black feedstock and
petroleum coke reduced from 5% to 2.5%
Defence services budget increased by 12%, but
capital budget increased by 15% to Rs69bn
Positive for Bharat Electronics
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