Wish List - Budget 2002

Aerated soft drinks

Industry chambers have called for a reduction in the special excise duty (SED) on aerated soft drinks\water. In its pre-budget memorandum, CII has asked the government to reduce the SED on aerated drinks from 16 per cent to 8 per cent as a first step in the Budget 2002-03 and then, bring it to zero in the subsequent Budgets.

At present, aerated drinks attract an excise duty and an additional SED of 16 per cent each. "All other processed food items and beverages are free from SED. Aerated soft drinks are products of mass consumption and levy of 16 per cent SED, which is on a par with pan masaala and chewing tobacco, is unfair," the chamber has said. Relief in SED and consequent price benefit to the consumer will help in stimulating growth, it has added.

Ficci has also called for removal of SED. Besides, it has suggested that soft drinks could be subjected to CENVAT on a par with other processed food items and beverages. "The high level of excise duty at the rate of 32 per cent coupled with various state levies ranging from 15 per cent to 32 per cent are adversely affecting the viability of the industry," it has said.

My Budget

Alok Vajpeyi

COO, DSP Merrill Lynch Investment Managers

My Budget wish is...

I hope the finance minister takes the reform process forward, particularly in the areas of infrastructural investment, divestment and agriculture.

To help my sector grow...

The government should encourage savings through mutual funds. Provident Funds should be allowed to invest at least 20 per cent of their corpus in equity.