What's Costly and What's Cheap? 10 Takeaways from Budget 2016

By siliconindia | Wednesday, 02 March 2016, 11:50 Hrs

Sanitary pads, tampons and diapers

Ingredients used to manufacture tampons and sanitary napkins witnessed a cost cut of 2.5pct in this budget, which is surely going down to slash the prices. The same will lower down the cost of diapers. Consumer goods giant P&G spokesman said, "We have announced a reduction of our selling price to our customers across specific SKUs with effect from March 16, 2011."

Pension plans

The proposal made for pension schemes by FM Jaitley said, “In order to bring greater parity in tax treatment of different types of pension plans, it is proposed to amend section 10 so as to provide that in respect of the contributions made on or after the 1st day of April, 2016 by an employee participating in a recognized provident fund and superannuation fund, up to 40pct of the accumulated balance attributable to such contributions on withdrawal shall be exempt from tax.” This has been criticized by the EPFO Board who threatens a national protest if this step is not taken back by the government.

Footwear

Excise duty has been halved in case of footwear with leather uppers, an attempt to push the domestic leather footwear industry. Woodland, MD, Harkirat Singh comments, "We were expecting total removal of excise duty, but the budget has only halved it. Still it will be beneficial to leather manufacturers and many other brands in the footwear industry."