BUDGET - BMR Advisors

during initial tax holiday years, since MAT credit can be carriedforward only for 7 consecutive years.It is expected that this anomaly may be reviewed and theundertaking engaged in developing, operating and maintaininginfrastructure facilities such as ports, roads, highways, bridgesand rail systems, may be exempted from applicability of MAT.Accelerated depreciation for plants and machineryAn undertaking engaged in developing infrastructure facilitiesincluding ports, roads, highways, bridges and rail systems, iscurrently eligible to claim depreciation at the rate of 15 percent(on written down value basis) on plants and machinery deployedin their operation.However, given the huge capital investments required for thedevelopment of such infrastructure facilities, it is imperative thatthe undertaking should be allowed to claim depreciation onplants and machinery at a higher rate.Excise and customsExemption from customs and excise for inputs usedfor waste management servicesFor developing countries like India, recycling of waste is themost economically viable option available both in terms ofemployment generation for the urban poor and investments.Certain waste management equipment attracts nil rate of exciseduty. The same exemption should also apply to other wastemanagement categories such as compositing, bio-methanation,etc. Accordingly, it is proposed that excise duty may beexempted on all instruments used for waste managementservices.Further, customs duty exemption should also be provided formachinery used in waste management services. As a result, theproject cost would decrease on reduction of the burden of taxes,thereby encouraging the private sector companies to invest inwaste management services.Abatement on excise duty levied on MRP for cementPresently, cement (other than white cement) attracts an advaloremrate of 12 percent of retail sales price where such retailindiaBUDGET200849