IIIrd stimulus to reduce cost, spur demand: Grant Thornton
The stimulus package announced by the government yesterday to spur the sagging economy will reduce cost and spur demand in the country, global consultancy firm Grant Thornton has said.
By PTI |
NEW DELHI: The stimulus package announced by the government yesterday to spur the sagging economy will reduce cost and spur demand in the country, global consultancy firm Grant Thornton has said.
"The stimulus package announced on February 24, 2009, the third in a row, after the ones announced on December 2 and January 7, comes as a booster to the economy, reducing cost and spurring demand," the firm said in a statement.
Finance Minister Pranab Mukherjee yesterday announced cut in excise duty and service tax by two per cent each and extended the existing four per cent reduction in excise duty beyond the end of this fiscal.
The announcements, the firm said should be perceived as positive steps to challenge the slowdown gripping the Indian economy.
The major sectors likely to benefit from the tax cut are automobile, infrastructure, IT and ITES, iron and steel, FMCG and chemicals, it added.
The 10 per cent excise duty only has been reduced to 8 per cent while the other slabs have been kept unchanged.
Also, among the measures was cut in excise duty on bulk cement by two per cent or Rs 60 per metric tonne, whichever higher, which would benefit the real estate sector, according to the firm.
The measures will, however, lead to a revenue loss of more than Rs 29,000 crore to the government exchequer, the Central Board of Excise and Customs has said.
"The stimulus package announced on February 24, 2009, the third in a row, after the ones announced on December 2 and January 7, comes as a booster to the economy, reducing cost and spurring demand," the firm said in a statement.
Finance Minister Pranab Mukherjee yesterday announced cut in excise duty and service tax by two per cent each and extended the existing four per cent reduction in excise duty beyond the end of this fiscal.
The announcements, the firm said should be perceived as positive steps to challenge the slowdown gripping the Indian economy.
The major sectors likely to benefit from the tax cut are automobile, infrastructure, IT and ITES, iron and steel, FMCG and chemicals, it added.
The 10 per cent excise duty only has been reduced to 8 per cent while the other slabs have been kept unchanged.
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Also, among the measures was cut in excise duty on bulk cement by two per cent or Rs 60 per metric tonne, whichever higher, which would benefit the real estate sector, according to the firm.
The measures will, however, lead to a revenue loss of more than Rs 29,000 crore to the government exchequer, the Central Board of Excise and Customs has said.
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