17 February 2009 09:54 [Source: ICIS news]
SINGAPORE (ICIS news)--?xml:namespace>
The budget, announced on 16 February ahead of the general election to be held by May, failed to provide any measures to resuscitate
In addition, the Indian government has not offered any tax reductions to the corporate sector to help it during the current economic slowdown, one of the producers said.
“We are disappointed, of course, because the budget doesn’t offer us relief, although it includes some measures to help accelerate rural development, which will help the ruling party garner votes in the elections,” it said.
Industry players had been expecting a cut in excise duty (central value added tax, or CENVAT) to 8% from the current 10%, said a polymer trader.
“This would have provided a bit of immediate relief to the industry. Instead, the government has announced some investment into the infrastructure segment, which will take a long time to have an impact,” he said.
The polyvinyl chloride (PVC) industry, which has been affected by the slowdown in the construction segment, had been hoping the budget would come up with some measures to boost house sales.
“This has not happened, so we are very disappointed,” said a PVC converter.
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