No relief to Aam Aadmi
The increase in service tax to 12% and withdrawal of tax exemption on reinsurance premium received will remain a cause of worrym, says Ajit Narain, MD&CEO, IFFCO-TOKIO General Insurance.india Updated: Feb 28, 2006 18:53 IST
The Union Budget announced today is a general populist budget with no significant relief to "Aam Admi".
The increase in service tax to 12% and withdrawal of tax exemption on reinsurance premium received will remain a cause of worry for all as we were hoping for some relief on that front.
We would, however, welcome the comprehensive bill on insurance, which is proposed to be introduced in 2006-07 incorporating the recommendations of the KP Narasimhan Committee.
The Finance Minister has proposed to promote foreign investment in the country by encouraging investment in Infrastructure projects, which is positive sign for infrastructural development of the country.
We can also foresee a considerable increase in sales of small cars with the reduction of excise duty on small cars.
Another beneficial development can be witnessed in the agriculture sector as the agriculture insurance scheme will continue and short term credit rate to farmers has been reduced to 7 % and a 2% interest waiver is proposed on farm loans.
(Ajit Narain, MD&CEO, IFFCO-TOKIO General Insurance)