Budget Expectations

MUMBAI, Feb 22 (Reuters) - Following is a snapshot of analysts' expectations from the federal budget compiled from brokerage reports.
Indian Finance Minister Palaniappan Chidambaram will present the budget for 2008/09 on Feb 29.
AUTOMOBILES
Uniform excise duty rates of 16 percent for all cars, large and small. - Reduction in excise duty on two wheelers to 12 or 8 percent from 16 percent. - Reduction in the excise duty on buses to 16 percent from 24 percent.
BANKING
Raising FII/FDI limit in state-run banks to 49 percent from 20 percent. - Relaxation in the lock-in period to three years from five years for bank deposits to qualify for tax benefits. - Interest earned on long-term lending to infrastructure industries to be exempted from income tax.
CAPITAL
Reduction in excise duty on air conditioners meeting energy efficiency guidelines to 8 percent from 16 percent. - Reduction in excise duty on power equipment to 8 percent from 16 percent. - Rationalisation of tax structures with respect to dividend paid by subsidiaries and special purpose vehicles.
CEMENT
Abolish the 5 percent import duty on coal and pet coke. - Value Added Tax on cement and clinker be reduced and brought in line with similar construction materials, like steel, to 4 percent from 12.5 percent.
CONSUMER GOODS
Excise exemption on biscuits similar to other food mixes granted exemption in the last budget. - Reduction in excise duty on processed foods to 8 percent from 16 percent.
FRTILIZERS
Removal or reduction of customs duties on inputs like liquefied natural gas. - Reduction in customs duty on sulphuric acid to 5 percent from 7.5 percent. - General sales tax exemption for basic raw materials like natural gas, naphtha, etc. - Reduction in excise duty on pesticides to 8 percent from 16 percent.
HEALTHCARE
Infrastructure status for hospitals with certain eligibility norms. - Relaxation of income tax for mergers and acquisitions with conditions.
HOTELS
Raising depreciation on hotel buildings to 20 percent from 10 percent.
INFORMATION
Extension of Software Technology Park scheme, which is set to end by 2008/09. - Reduction in excise duty on personal computers to 8 percent from 12 percent. - Abolish excise duty of 8 percent on packaged software sold over the counter.
LOGISTICS
Infrastructure status for warehousing and shipping industry.
MEDIA
Abolish custom duty on digital exhibition equipment. - Abolish 16 percent excice duty on set-top boxes.
METALS
Reduce excise duty on long steel products to 8 percent from 16 percent. - Abolish 5 percent customs duty on import of scrap. - Increase in export tax to 2,500 rupees per tonne from 1,500 rupees on key raw materials for steel. OIL & GAS ---------- - Cut in excise duty on petrol and diesel. - Removal of service tax on exploration activities. PHARMACEUTICALS
Reduction in maximum retail price-based excise duty to 8 or 12 percent from 16 percent. - Excise duty exemption for all the 354 drugs specified in the national list of essential medicines. - Research & development tax exemption given to generic pharmaceutical companies to be extended to the hived off, pure play R&D companies. - Life saving drugs to be exempted from customs duty of 5-10 percent.
POWER
Extension of tax holidays for ultra-mega power projects till 2017. - Easing external commercial borrowing norms to enable mobilisation of funds from abroad. - Income tax exemptions for power infrastrcture bonds. - Cut in excise duty on power equipment and other inputs to 8 percent from 16 percent.
RETAIL
Industry status to retail.
REAL ESTATE
Lowering the foreign direct investment threshold below 50,000 square-feet. - Uniformity in stamp duty across states. - Clarity on norms governing real estate investment trusts with adequate tax benefits similar to mutual funds.
SUGAR
Lowering of excise duty on ethanol to give a boost to the mandatory blending with petrol- Uniform and lower sales tax among states. - Excise duty structure on molasses of 750 rupees per tonne to be replaced with an ad-valorem duty structure.
TEXTILES
Reduction of excise duty on man-made yarn to 4 percent from 8 percent. - To allow contract labour. - Reduction i0n license fees to a uniform 6 percent of adjusted gross revenue. - Removal of customs duty for telecoms equipment from the current rates of 4-37 percent. - Exemption of service tax on broadband services for the next five years.
Collated from the reports of following brokerages: Batlivala & Karani Securities, Edelweiss Securities, Kotak Securities, Religare Securities and Sharekhan