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'QRs being removed could have got more attention'

Jairaj Purandare

The Budget is very positive, growth driven, furthers structural reforms and deepens the rationalisation process. Overall it is good for the industry and capital markets. It ushers in very deep tax reforms focussed on agriculture and infrastructure sectors, has a sense of seriousness and urgency about reforms, and indicates stability.

But the QRs being removed and SSI dereservation could have got much more attention. We would like to see actual action and implementation, eg, in power sector reforms and privatisation. The government should be determined to make it happen.

In terms of other significant tax changes, excise duty seems to have received particular attention. There are going to be industries that will be hit by the withdrawal of exemptions -- which will now go up from 4 up to 16 per cent. There was enough warning though, and this is being done in a phased manner.

Jairaj Purandare is Managing Partner, Tax and Business Advisory, Arthur Andersen

Budget 2001

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