Budget 2015 Reaction - Retail Sector - Mr. Harkirat Singh, Managing Director Woodland

Firstly, the announcement by the FM to introduce Goods & Services tax (GST) on 1st April 2016 will definitely rejuvenate the retail industry. This initiative would play an important role by increasing buoyancy and reducing the cascading effect of tax. GST would play a transformative role and bring about revolution in the Indian economy. The increase in service tax from 12.36% to 14% would ideally be a precursor to introduction of GST. This would avoid the feeling of steep increase of taxes on service, on the introduction of GST as proposed rate under GST is expected to be more.

Though we were expecting total removal of excise on footwear, the announcement to cut the excise duty on leather footwear priced more than Rs.1000/-pair to reduce by 6% would be beneficial to leather manufacturers and many other brands in the footwear industry.

This definitely is a step towards promoting production facilities in India thereby supporting 'Make in India' campaign.

Source : Equity Bulls

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