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Budget Impact on Cement sector
Overall impact: Moderately Positive
Excise Duty
- White cement and other special cements will
attract SED of 16% and a total duty of 32% as compared to the present 24%
(16% basic + 8% SED)
Customs Duty
- Customs duty on cement, and clinkers has been
reduced from 35% to 25%. While the Cement Manufacturer Association (CMA)
has stated that the domestic industry would not feel threatened by imports
in view of the cost competitiveness of the domestic cement companies, this
measure is likely to soften the prevailing high domestic prices of cement.
- Due to removal of 10% surcharge on basic customs
duty, the cost of imported non-coking coal, a key input, will be reduced.
Other Changes
- Maximum amount of deduction available for interest
payable on housing loans for self-occupied houses has been increased from
the present Rs 100,000/- to Rs 1,50,000. This sop, aimed at housing sector,
will positively influence the cement sector.
- Cement used for construction in the earthquake
affected regions of Gujrat, by HUDCO and by agencies identified by the State
Government, would be exempt from excise duty.
- The Government’s effort to intensify infrastructure
investment in the form of ten year tax holiday will further help to boost
the demand for cement
Rediff-Dun & Bradstreet Budget Impact Analysis
Budget 2001
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