The Hindu Business Line : PSU refineries get tax holiday

New Delhi, April 29 Three upcoming PSU refineries, units coming under the STPI scheme and 100 per cent export-oriented units are some of the beneficiaries of the amendments moved by the Finance Minister, Mr P. Chidambaram, to the Finance Bill 2008 in the Lok Sabha today. The House later passed the Bill through a voice vote.

Public sector oil refineries at Bina, Bhatinda and Paradip are to be entitled for seven-year tax holiday benefit, if they commence refining before March 31, 2012, according to the amended Finance Bill.

Software units under the Software Technology Park of India (STPI) scheme and export oriented units (EOUs) will get one more year of income- tax exemption up to March 31, 2010.

Incomes of Agricultural Produce Market Committees (APMC) or State Agricultural Marketing Boards (SAMB) will be specifically tax exempt to remove doubts on their taxability.

The commodities transaction tax (CTT) is to stay and without reduction in the rate proposed in the Budget. EOUs have to pay anti-dumping duty on imported inputs.

Basic customs duty on newsprint has been brought down to 3 per cent from 5 per cent. There will be full basic customs duty exemption on cut and polished coloured gemstones and rough synthetic gemstones that currently attract 5 per cent duty.

Packaged cement with price above Rs 250 a bag (of 50 kg) will attract excise duty of 12 per cent of retail sale price, against current specific duty rate of Rs 600 a tonne.

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