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Impact of Budget 2013 On Bakeries

Indian Budget 2013-14  has been  presented by Finance minister Mr Chindabram  in parliament .    Its  time to see the impact  on these policies on  bakery industry . Over all the  budget tends to  do the balancing act of growth  as well as containing fiscal health .  With significant decision on retail sector has already being decided  earlier  where forgien retailers can now open retails unit  in multi brand products including agriculture products . Hence road blocks for retail giants like Walmart , Tesco and Carrefour has been removed with few riders to safe guard  local manufacturers . People were expecting some big ticket reforms but  nothing  come out  of this budget . Industry  performance has been lacklustre for last two quaters and GDP growth  has fallen to  5.0 % in recent studies .

 Here  are  few decisions which would have impact on bakery industry


Positives  for  bakery industry

No change in excise duty and import duty .
Rebate on income tax  for people whose salaries are in the bracket  .of 2.0- 5.0 lakh  in form of tax credit worth Rs 2000/-.

Exemption of service tax on freight charges  for goods transport agencies for essential items such as flour , jaggery ,sugar , salt ,milk  and edible oil  could  reduce the frieght cost for  large bakeries

Increased outlays on rural development  and increase in MGNREGA funds   to the rural  workers   thus  giving more money  to rural population would definitely increase sale of  bakery products in these areas .

Significant infusion of  funds   in  rural  sector . through various schemes .

Income tax relief for loans upto 25 lakhs could bring some additional money in the hand of middle class consumers .



Negatives 

 Non - A/c  restaurant  has now come  under service tax net . hence eating out  would become more costlier

 No cost  relief on petrol,diesel and gas

Freight  surcharge   on goods transported through railway s  could lead to some price increase on bulk ingredients.

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