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.
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.
