Indian capital good companies are expecting a reduction in various excise duties in order to improve their cost competitiveness.
The industry is expecting a reduction in excise duty on copper winding wire apart from a further reduction in duty on capital goods such as construction and electrical equipment. However, the ratings agency is not very confident of Finance Minister Arun Jaitley paring the duties.
According to the report, the excise duty on copper winding wire is likely to continue at the current 12 percent (vis a vis expectation of 10 percent) and excise on capital goods too is likely to continue at the current 10 percent.
Furthermore, industry experts are hoping for a removal of state entry tax for goods already subjected to value added tax (VAT) or central sales tax (CST).