Budget 2013: What aviation, Media & Entertainment and Textiles sectors expect

As the FM gets ready to table the Union Budget today, ET brings you the expectations from various sectors of the economy:-


Aviation

For the aviation industry which is now facing a severe challenge - a long-standing demand has been to include Aviation Turbine Fuel or ATF in the declared goods category. The industry also expects the government to reduce airport-related charges. Beside this, it also has sought infrastructure status to gain relief in terms of taxes and access to finances. The industry also wants the government to allow imports of items related to airfield crash fire tenders and other fire fighting vehicles, runway marking and pavement testing machine, baggage conveyor (handling) system, and airport ground lighting, which are required for the development of airports at a concessional rate of basic custom duty of 5%.

The airlines industry also wants the government to approve support services of airport to be termed under Infrastructure-80IA Act, which would have a positive impact on airlines. The industry also wants the government to provide provision for tax incentives for "Maintenance, Repair & Overhaul (MRO). This would bring down Airline's O&M costs and could have enhancing impact their earnings.

Media & Entertainment

The industry expects rationalising of multiple taxation structure in the DTH industry. Multiple taxes now add upto 56%. These include licence fee, service tax, entertainment tax, VAT on customer premises' equipment - set-top box, and dish antenna among others. The industry wants the government to abolish double taxation in Cable TV and DTH services. Transmissions of programmes are taxed as "services" by the central government and as 'entertainment' by the state governments.

The industry wants a waiver of entertainment tax by state governments for the five years for cable networks migrating from analogue to digital. It also expects reduction of customs duty on set top box, and grant of infrastructure status to cable industry. It expects removal of service tax on advertising in broadcasting, Digital Cinema services and tax holiday for animation industry. On the wish list too is a reduction in license fee to 6% from 10% and exemption from service tax in the DTH segment.

Hospitality, Travel & Tourism

The hospitality sector is expecting to realise its long-standing demand of infrastructure status to the industry. It also expects reduction in service and luxury tax, which is 40% now. The travels industry expects the government to boost investment.

Textiles

The textiles industry is expecting an increase in abatement on branded garments for excise duty, which is 70% now to close to 85%. This would provide a respite to the companies in the apparels segment. They reckon that the government may increase customs duty on Polyester fiber and filament yarn, which is 5% now.