Excise cut to help construction firms

Finance Minister Pranab Mukherjee’s proposal to withdraw the 8 per cent excise duty on pre-fabricated concrete slabs and blocks has brought relief to a section of construction companies, report Ruchi Hajela & Samiran Saha.

Finance Minister Pranab Mukherjee’s proposal to withdraw the 8 per cent excise duty on pre-fabricated concrete slabs and blocks has brought relief to a section of construction companies.

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The construction industry had made several representations to the government after the exemption was withdrawn in 2006.Concrete slabs and blocks are used at road and infrastructure sites.

“... This will have a very positive impact on construction companies that have been asking for an abolition of the levy for past three years now,” Nabin Ballodia, director tax, KPMG, a global consulting firm told HT.

According to industry watchers, pre-fabricated pieces are time and cost saving and are widely used for road and other mega construction projects.

Private equity companies feel the exemption will lead to affordable housing.

“The focus of government on investment in skills upgradation, affordable housing, will create opportunities for venture capitalists and private equity investment as part of public private partnerships and otherwise,” Saurabh Srivastava, chairman, Indian Venture Capital Association said.