The shipping sector is already going through a down cycle.  Now it has got a shocker from the Union Budget 2012-13. The shipping industry unlike other industries attracts tonnage  tax and the budget has proposed to increase the tonnage tax by more than 50% on various class of tonnage effective  from April 1, 2013. Under the tonnage tax scheme, the operating profit of a shipping company is determined on the basis of tonnage capacity of its ships.

Budget proposal

Budget Provisions

Change in Excise duty

The excise duty structure on cement manufactured and cleared in packaged form is being rationalized. The graded RSP slabs for the purpose of charging of duty on cement manufactured and cleared in packaged form are being done away with. The rates on cement and cement clinkers are also being revised as under:

National Association of Software and Services Companies (NASSCOM) today expressed its disappointment on the Union Budget Proposals 2012-13, terming the budget proposal as a 'lost opportunity' for the economy.

Budget 2012 is disappointing on various counts — there is no focus on putting the economy on a high growth trajectory; fiscal deficit reduction is through higher taxation, rather than expenditure management; there is no roadmap on implementation of DTC and GST; and also issues of tax simplification, litigation have not been addressed. The continuing uncertain business environment will be negative for investment and hence for growth as well. Equally important, given the current account deficit, there is need to provide a strategic thrust on high value exports; this aspect has been totally ignored.

While the focus on infrastructure through various schemes is positive, the increase in indirect taxes both service tax and excise is a setback. For the USD 100 billion IT-BPO Sector,