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New Delhi, July 7 Highway developers have welcomed the proposed exemption of eight per cent excise duty on goods manufactured at work sites, but are unhappy with the increase in the Minimum Alternative Tax.

“Minimum Alternative Tax (MAT) was introduced to address inequity in taxation of corporate taxpayers.

“ In the quest for greater equity, I propose to increase the rate of MAT to 15 per cent of book profits from the present rate of 10 per cent.

“However, to grant relief to corporate taxpayers, I also propose to extend the period allowed to carry forward the tax credit under MAT from seven years to 10 years,” the Finance Minister stated. According to Mr Ankineedu Maganti, CEO, Soma Enterprise Ltd, “The clarification provided in exemption of excise duty on goods manufactured at site for use in construction is a welcome relief. This had been a cause of tremendous debate over the past couple of years, especially with urban projects depending heavily on pre-cast elements.” He further added, “Currently, all infrastructure projects executed on PPP basis enjoy tax exemption under Sec 80 IA and pay MAT, instead.”

More Stories on : Budget | Roadways | Excise and Customs

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