New Delhi: The domestic industry on Thursday welcomed the Government move to reduce excise duty on cement but expressed disappointment over continuation of Fringe Benefit Tax on Employees Stock Options Plan (ESOPs).
"Moderation in excise duty on cement will amount to containment of prices and provide respite not only to the manufacturers but also to consumer," Assocham President Venugopal Dhoot said reacting to the changes in the Finance Bill passed by the Lok Sabha.
Dhoot also praised Finance Minister P Chidambaram's assertion to keep inflation below 5 per cent, which would lead to reduction in prices of essential commodities.
The chamber has urged the Government to adjust the double excise levy on cement manufacturers as it will extend relief to consumers particularly when infrastructure improvement has become the top priority of the Government.
Echoing similar views, FICCI President Habil Khorakiwala hoped that the Income Tax code to be introduced by the end of the year would be a major improvement over the present system.
However, he expressed dismay on ESOPs, which continue to remain under the ambit of FBT.
"ESOPs are only employees perks and should be liable to tax only at their hands; employers at best could be required to deduct tax at the determined difference in prices from the employees on the vesting date," said Khorakiwala.
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