Steeper course for Cars
Automakers such as Maruti, Hyundai and General
Motors, enjoying resurgent sales after a long lull,
as well as consumer durables, steel and cement
firms could see demand pocked after a hike in
central excise duty to 10% from 8%. For big cars,
the duty has been hiked to 22%.
Weaker foundation
Government imposes service tax
on construction
of complexes, which could hobble
demand for real estat projects.
Profits of real estate companies
such as DLF, Unitech and Parsvnath
that are emerging from the slowdown
could be under pressure.
Time to quit smoking?
Excise duty on tobacco products like
cigarettes, cigars and cigarillos hiked,
a blow for cigarette makers such as ITC
and Godfrey Phillips. Though a big price
hike is unlikely, the market took note with
ITC shares falling 6.2% to Rs 232.05 on the BSE.
Running out of control
Bulk transporters such as steel, cement
and fertiliser companies as well as iron
ore and coal miners could see their
freight costs rise by about Rs 100 per
tonne after movement of goods, excluding
foodgrain, by railways is saddled with service tax.
Cricket pitch lowered
Govt takes some sheen off the marketing
prowess of sporting events such as IPL
and Hero Honda Indian Open (golf) by
levying a service tax on their promotion.
The move could dampen the enthusiasm
of advertisers & strain brands’ profits.
Air turbulence
Setback for airlines such as Jet Airways,
Kingfisher Airlines, Air India and Indigo,
whose ticket sales have just about begun
humming again, as government expands
service tax to all classes of travel on international
and domestic flights. Earlier, only international
business class travel was taxed.
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