Union Budget 2015-16 Predictions : MAT removal, infra status to boost oil, gas sector

Oil exploration and refining companies are hoping that that the government will extend tax holiday benefit to 10 years from the current 7 years. The tax holiday is available only to blocks assigned in Nelp-VIII and coal bed methane round (CBM IV).

The industry is hoping that exploration and refining would get infrastructure status. The industry is also hoping for exemption from the 18.5 percent Minimum Alternate Tax.


Union Budget 2015-16 Suggestion : Infra funds, zero MAT to boost sector returns

Removal of Minimum Alternate Tax from infrastructure projects is key to improving returns on infrastructure projects, says brokerage house Morgan Stanley in its Budget expectations report.

It has suggested setting up of more infrastructure funds to ease the problem of inadequate capital that is choking infrastructure companies. It has also suggested removal or reduction in the inverted duty structure in some capital goods sector.


Union Budget 2015-16 Pre-Update : Govt may incentivise medical/pharma research.

The pharmaceutical industry is expecting initiatives to boost bulk drug manufacture in Budget 2015. The current rate is 5 percent but the industry is expecting an increase in import duty on Chinese imports to 7.5 percent.

According to brokerage firm CARE Ratings, imports of bulk drugs have increased in recent years, especially from China. Government may want to reduce dependence for bulk drugs on Chinese imports. Hence, it may incentivise local manufacture of bulk drugs.

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