The Hindu : Business : PC, tractor units confused

Online edition of India's National Newspaper
Friday, Jul 09, 2004

Business

Business

PC, tractor units confused

By Shanthi Kannan

CHENNAI, JULY 8. The Union budget has removed completely the excise duty on personal computers and tractors. If you expect prices of PCs and tractors to drop to that extent, you may be in for a disappointment. The PC makers and tractor producers are now waiting for the fine prints to get a clearer picture of the full impact of the dramatic announcement of the excise waiver. Depending on whether or not they get similar duty waiver on a host of components that go into the making of PCs and tractors, they have to make appropriate price reductions — that may work to very insignificant level in the case of extreme possibility.

"I am very happy about the thrust given to agriculture in the budget," said Mallika Srinivasan, Director, TAFE. However, she could not hazard a guess on the impact of excise waiver on tractor prices.

The PC industry is also similarly in a state of confusion. Vinnie Mehta, Executive Director, MAIT, the PC industry body, wants nil excise duty on IT peripherals as well if the full benefits of excise cut should be passed on to consumers.

Real estate

The budget has relaxed the condition of minimum plot size to one acre for any housing project.

`Industry is sure to reap benefits,' says R. Kumar, Managing Director, Navin Housing and Properties (P) Limited.

He feels the relaxation in minimum plot size will encourage more builders to take up construction activities.

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