Cement cheers industry, Esops tax still a sore point

8220;The tax burden in north India could come down by up to Rs 2 per bag, but in Mumbai where the prices were as high as Rs 260 per bag, there may not be any impact,8221; said J K Lakshmi Cement8217;s director, Shailendra Chouksey.

However, while industry associations are happy with the move on cement, continuation of fringe benefit tax on employees stock options plan ESOPs has met with sharp criticism.

8220;ESOPs are only employees perks and should be liable to tax only at their hands; employers at best could be required to deduct tax at the determined difference in prices from the employees on the vesting date,8221; said FICCI president Habil Khorakiwala.

On the Finance Minister8217;s target to bring down inflation to 4.5 per cent, CII has said that this will require a lot monetary intervention, which may have an adverse impact on growth.

The finance ministry8217;s announcement of introducing Income Tax code at the end of this year and the extension of the pass through status for investment by venture capital funds in infrastructure projects has also been welcomed by FICCI.

Meanwhile, civil aviation minister Praful Patel today welcomed the removal of customs duty on import of aircraft by non-scheduled operators and flying training institutions.