India Inc pitches for duty cut in farm sector

The study done by Assocham projects that the reduction would improve supplies of both essential commodities and the raw material for industry. The respondents also feel that besides the need to check inflation, the other important reason for the customs duty cut would be the commitment of the government to bring down the tariff to ASEAN level.

About 68 per cent respondents expect that the finance minister would announce tax breaks on deposit mobilisation by the banks have been facing the problem of deposit mobilization with the upsurge in the credit demand and increase in the cash reserve ratio and repo rate.

Therefore, a positive step by the finance minister to boost the bank deposits, in form of relaxation in the lock-in-period for time deposits is also on cards.

In the wake of skyrocketing inflation, a cut in the excise duty on crude oil in forthcoming Budget is also expected by a considerable section of the industry.

Around 90 per cent of the respondents are hopeful about increase in budgetary allocations for the farm sector coupled with a package of duty cuts for the food-processing sector.

Also, 83 per cent of the respondents feel there could be a change in service tax rates since the road map for the composite GST Goods and Services Tax has already been laid, Assocham said.