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Old 29th February 2008, 14:31   #46
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The point is that most big farm loans are not taken by farmers, but by politicians masquerading as pseudo farmers. There is a huge political mafia out there who loot the system.

Pradeep
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Originally Posted by rkg View Post
i feel ( my personal opinion only) that those who cribbing about farm loan waiver are doing not for sake economy but because their share of loot is reduced

Last edited by pradkumar : 29th February 2008 at 14:33.
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Old 29th February 2008, 14:33   #47
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But are the real farmers getting the benefit of loan waivers. I really doubt that. These are mostly the politicians like Gowda who owns 100s of thousands of hectares of land and also enjoy the benefit of things like this.

But i do welcome this move for the small number of genuine farmers who will be benefited by this move.
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Old 29th February 2008, 14:39   #48
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Originally Posted by pradkumar View Post
The point is that most big farm loans are not taken by farmers, but by politicians masquerading as pseudo farmers. There is a huge political mafia out there who loot the system.

Pradeep
kindly read the budget proposal carefully

farm loans of small and marginal farmers only waived fully

small farmer below 1 ha

marginal farmer 1-2 ha

for others it is 25% waiver. remaining 75% has to paid. but i think the actual proportion of this category will be more than Small and Marginal Farmer category

in general it is very difficult for these categories of farmers to get loans from banks.
so i think the figure of 60K is for election consumption

Vasudeva: you are right. that is why i mentioned these guys have spend lots of time and energy to actually get the benefit unlike us.

even if 20-30 % of actual and intended beneficiaries get it . that is would be good.

those of you interested read the articles by Mr Sainath in Hindu in the last 5-6 years about this issue

Last edited by rkg : 29th February 2008 at 14:39. Reason: spell check
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Old 29th February 2008, 14:39   #49
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Originally Posted by LLL View Post


60k crores farmers loan waived off...banks are gonna take the hit.

i wonder how banks will recover this amount..maybe by raising fees for transactions and increasing rates on loans....

Of course not. Banks would take a hit if this was not a budget allocation. Banks will get grants for Rs 60000 cr and that will actually help them clean up a lot of the sub prime stuff.

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Originally Posted by Neeraj Dabake View Post
Maruti dealer is saying that I should book today to get the benefit of Feb's discounts, plus new reduced pricing. If discount goes down tomorrow, I still get today's higher discount. In case, discount goes up I get that increased discount. Believable???? Is such a thing possible for the dealer to do in the first place?

Pls help with ur views urgently - in this case, I need to book today !!!!

Neeraj

Excise duties etc will reduce in the new financial year. Nor right now. Unless companies specifically announce a price reduction, there is no reason to believe these budget recommendations will automatically result in a reduction in prices.

Last edited by Technocrat : 29th February 2008 at 15:19. Reason: Back to back post - use Multiquote option
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Old 29th February 2008, 14:44   #50
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Default Excise duty cut on cars this Budget

Guys,
Good news,
Mr. Palaniappan Chidambaram, Hon Finance minister, while presenting the budget has proposed an excise duty cut for small cars from 16% to 12%
And also an excise duty cut for Hybrid cars from 16% to 14%.


Read it on Rediff.com
Excise duty on small cars reduced to 12 per cent from 16 per cent and hybrid cars to 14 per cent.

Does that mean that cars are gonna cost cheaper from April 01 2009 ?
do you think that car manufacturers will pass on the full benefit to buyers ?
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Old 29th February 2008, 14:53   #51
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Excise duty and customs duty changes will be applicable from March 1, 2008, not April 1, 2008.
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Old 29th February 2008, 14:55   #52
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Quote:
Originally Posted by rkg View Post
even if 20-30 % of actual and intended beneficiaries get it . that is would be good.
See, thats the whole issue.

1. instead of making ppl used to waivers, help them become self-sufficient. Going forward, why would anyone want to return a loan? Actually...why would any bank want to give a loan to a farmer?

2. We already have too many freebies (subsidies on diesel/fertilizers/seeds, free power & water for farmers) and no tax on agri income. Loan waiver adds to that list.

3. Most of poor farmers do not get loans from banks. they take loans from moneylenders. Only rich and powerful farmers/zamindars get the loans by doing favors to bank officers.

Instead, FM should have made it mandatory for banks to give loans to farmers at lower rates of interest. For existing loans, reduce the roi and increase the payment terms if needed.

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Of course not. Banks would take a hit if this was not a budget allocation. Banks will get grants for Rs 60000 cr and that will actually help them clean up a lot of the sub prime stuff.
There is no such declaration from FM in budget speech. NTDV panelists did a quick calculation to show that FM cannot provide 60k. he will have banks eat a good share of this amount.
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Old 29th February 2008, 14:59   #53
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"We have decided to pass on the benefit of the excise duty cut to customers on three models--Santro, i10 and the Getz-- effective April 1," a Hyundai official told PTI.
The price cut on Santro could be between Rs 12,000 and Rs 14,000, while that on Getz would be between Rs 14,000 and Rs 16,000.
Price cut on the newly launched i10 could be between Rs 12,000 and Rs 16,000, the official added.

General Motors is also cutting he price of its small cars Spark and Aveo U-VA.
"We will be cutting the prices of our small cars between Rs 7,500 and Rs 14,000," GM India Vice-President P Balendran said.
Meanwhile, rival Maruti officials said the company was studying the impact of the excise cut before taking any steps.
some manufs passing on the benefits...
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Old 29th February 2008, 15:09   #54
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Budget: What's cheaper, what's costlier

Were you planning to get yourself a new car? Well, wait till April 1.

For, Finance Minister P Chidambaram has proposed a reduction in the customs duty on small and hybrid cars during his Budget speech in the Lok Sabha on Friday.

Chidambaram has provided relief to auto manufacturers of hybrid cars by reducing the excise duty on them from 24 per cent to 14 per cent.

These cars are currently not on sale in India, and use a combination of electric motors with gasoline/diesel engines to enhance efficiency and reduce pollution.

Effective April 1, the move paves the way for manufacturers such as Honda Siel, Toyota India and Mahindra & Mahindra to immediately launch their vehicles that were on display at the Auto Expo in January.

These include the Honda Civic hybrid and the Mahindra Scorpio hybrid, while Toyota have displayed the technologies surrounding the Prius in past years.

Both the Prius and the Civic will enter through the import route, while the hybrid Scorpio will be developed and locally manufactured.
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Old 29th February 2008, 15:12   #55
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Its basically a safe and popular budget that the FM has presented, mainly to preserve the vote bank. He has announced a one-time settlement of loans for all other farmers. The write-off will be worth Rs 50,000 crore and The government will compensate Rs 60,000 crore to the banks for waiving off loans to the farmers. So the banks are really not going to take the hit.
However, there is no relief for corporate tax payers as they will pay the same rate as they used to. They were expecting a cut in corporate tax rates. Also STT and dividend tax remain the same. Additionally, the biggest negative is the increase in short term capital gains tax to 15% from the earlier figure of 10%. The stock market has gone down by 450 points on hearing this

I will be attending the post budget analysis session of E&Y today and PWC/KPMG tomorrow in Mumbai. Will try to post more in-depth analysis.
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Old 29th February 2008, 15:20   #56
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Quote:
Originally Posted by nishantgandhi View Post
Its basically a safe and popular budget that the FM has presented, mainly to preserve the vote bank. He has announced a one-time settlement of loans for all other farmers. The write-off will be worth Rs 50,000 crore and The government will compensate Rs 60,000 crore to the banks for waiving off loans to the farmers. So the banks are really not going to take the hit.
An analyst gave this clarification on ibn7

- govt will provide budgetary support of 50k crores
- banks may have eat up 10k crores

Last edited by LLL : 29th February 2008 at 15:21.
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Old 29th February 2008, 15:20   #57
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Except of some good news for Auto sector and marginal hike in overdue Tax exemption limits budget is a disppointment . On +ve side we should see Scorpio hybrid pretty soon .
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Old 29th February 2008, 15:32   #58
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This is not what I read

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He also added that the 2% additional CENVAT would mean a 6-7% increase in the price of the Verna sedan
Does that mean that all sedans in the same category will have a price increase.

Source

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Originally Posted by ram_hyundai View Post
There will be a reduction of 4% on small cars and 8% on sedans,full news is not out as yet.We will have a better picture by 4 pm.
ram
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Old 29th February 2008, 15:36   #59
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Originally Posted by vasudeva View Post
Excise duty and customs duty changes will be applicable from March 1, 2008, not April 1, 2008.
Yes you are right. I did not remember that.
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Old 29th February 2008, 15:37   #60
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Can anyone tell me when this Excise duty is going to be effective?
Is it March1st 2008 or April 1st 2008?

how much will be the price reduction of small cars worth 5 to 6 lacs??
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