Budget 2019

'Not too positive for manufacturing, corporate sector'

Abhishek Law Kolkata | Updated on January 20, 2018 Published on February 29, 2016

Union Budget 2016 is indeed a well-thought budget with a clear focus on agri sector, infrastructure and rural development, maintains Harkirat Singh, Managing Director, Woodland Shoes.

However, according to him, its not too positive for the manufacturing and corporate sector.

“The increase of service tax this year from 14.50 per cent to 15 per cent will have an adverse effect on the business economics,” he said.

According to him, the biggest concern, for a manufacturing company like Woodland is the immediate implementation of an excise of 2 per cent without input tax credit or an excise of 12.5 per cent with input tax credit on readymade garments. This will hit company margins.

Footwear, he said, has marginally benefited with the increase of abetment from 25 per cent to 30 per cent; but rubber sheets (used for manufacturing footwear soles) have benefited substantially from reduction in excise duty to 6 per cent (from 12.5 per cent).

Published on February 29, 2016
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