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The abolition of the commodities transaction tax and the fringe benefit tax was a welcome measure which has reduced the burden on industry.

The Budget has laid a strong emphasis on infrastructure, much needed in India today.

The scope of provisions relating to weighted deduction of 150 per cent on expenditure incurred on in-house R&D to all manufacturing businesses, including those in the chemical space being extended is a good step.

However, keeping in mind the allocation of funds toward the development of infrastructure, creation of employment and the eradication of poverty, it is expected that the reforms for business would not be completely positive. The maintenance of status quo in corporate taxation was disappointing, as they still continue paying close to 33.9 per cent.

The budgeted fiscal deficit touching 6.8 per cent and no roadmap being shown to bring down the deficit over a period is a serious concern.

The upward revision in the minimum alternative tax (MAT) from 10 per cent to 15 per cent of book profits was cited as a move to bring about greater equity but is still a blow to the corporate world.

Venkatesh Sankaran, Director and

Chief Financial Officer, Lanxess India Pvt Ltd

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