By focusing on progressive steps like reducing the rates of basic customs on 22 items including certain inputs, raw material, intermediates and components, the Union Budget 2015 is aimed to strengthen domestic manufacturing. As the role of indirect taxes is very important in boosting domestic manufacturing, the proposal of corporate tax cut from 30% to 25 % and reducing taxes on services from 25% to 10% is going to push forward ‘Make in India’ initiative. This will support the mobile and telecom services eco-system, bringing down manufacturing costs and reduce tax liabilities of companies to help them attract investments and create job opportunities in the country. By proposing the full exemption on all goods and reducing the SAD on imports of certain other inputs and raw materials, the Finance Minster has created a roadway for a robust manufacturing in the country. However, to safeguard the interests of the indigenous mobile handset players, the revisions in excise duty structure should have been unrolled gradually to give optimum time to local handset manufacturers to thrive and strengthen their manufacturing capabilities in the interim.
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