LG's wishlist from the Union budget 2008-09

Hi,

 

This is in reference to colum "Budget Line" in Business Line. Attached are the digital photograph and his profile. Do let us know if you need further info.

 

 

This is in reference to the Union Budget 2009-10 to be presented on 3rd July, 09.

 

LG Electronics India would like to comment on the company's expectations from this year's budget. Enclosed and attached is the company's take on it.

 

Pre – Budget 2009 comments

  by

 

Mr. Moon B Shin

Managing Director – LG Electronics India 

 

 

The Union Budget 2008-09 was essentially a growth driven budget with good signals on the overall industry. Govt. has stood by its plans as discussed in the budget impacting over all growth in Industry. The global recession had no impact on Indian economy because of the timely and corrective actions by the policy makers of India. The continuous duty reduction has helped in price reduction across the product category and such supportive measures have helped the Consumer Durable industry in achieving the high growth rate. We are sure that the pace of reforms will continue as impressive as in the past.

 

 

• The India is becoming an emerging country with fast economical growth. The internal consumption of all category of product is growing day by day. Besides India is on the path of becoming Global choice for manufacturing hub for exports. Govt. need to look into improvement in Infrastructure including Ports development, Express road network, and communication.

 

• India can compete any other country in its capability and development. It is in the path of becoming Global player as manufacturing Hub for all Export to Europe, US and Africa. To achieve this goal Govt. need to focus on export industry and special schemes are required to bring investments and generate employment.

 

• To prepare a common platform for manufacturing units, govt. must look for implementation of GST as promised in previous budget. The Tax boundaries need to be rationalized and State Sales tax should be communized without any exception of states putting any additional tax.

 

• India has a great potential for the IT, Telecom and Electronics sector. To have a better edge over international market, development of component and Raw material is essential. Govt. should support such industries and take out special schemes for in-house component development and R&D.        

 

 

The Govt. should compensate basic infrastructure requirements such as Water, Electricity and steel for construction and also remove inverted duties on the raw material and components in order to have a competitive product available at less cost for a common man.

 

 

• The Government must look at industry as a growth driver and initiate steps to help in that cause. To make this industry grow and contribute to the whole economy the following area's need attention during this budget:

 

- Implementation of GST and rationalize taxation on all India basis.

       

     - Levy of Fringe Benefit Tax (FBT) and "Minimum Alternate Tax (MAT)"  

     resulting in high operational cost making final product costly.  

 

- High interest rates leading to pressure on borrowing increasing    

             overheads.

 

- High corporate Tax of 30% resulting in increase of overheads making 

              product uncompetitive in domestic market.

 

 

 

Thanks and regards,

Vineet Sharma
Hanmer MS&L|Member of PUBLICIS GROUPE)
E-228, Ground floor, East of Kailash New Delhi – 110065
M: +91 9999870197 B: + 91-11-46517700
F: +91-11-46517799
E-mail: vineet@hanmermsl.com
WebSite: www.hanmergroup.com

Information contained in any e-mail transmitted from or on behalf of Hanmer MS&L Communications Pvt. Limited are confidential and intended solely for the addressee(s) and may be legally privileged or prohibited from disclosure and unauthorized use. No legally binding commitments will be created by this E-mail message. Hanmer MS&L Communications Pvt. Limited may not be held responsible for the content of this email as it may reflect the personal view of the sender and not that of the company.

--
Thanks and regards,

Vineet Sharma
Hanmer MS&L|Member of PUBLICIS GROUPE)
E-228, Ground floor, East of Kailash New Delhi – 110065
M: +91 9999870197 B: + 91-11-46517700
F: +91-11-46517799
E-mail: vineet@hanmermsl.com
WebSite: www.hanmergroup.com

Information contained in any e-mail transmitted from or on behalf of Hanmer MS&L Communications Pvt. Limited are confidential and intended solely for the addressee(s) and may be legally privileged or prohibited from disclosure and unauthorized use. No legally binding commitments will be created by this E-mail message. Hanmer MS&L Communications Pvt. Limited may not be held responsible for the content of this email as it may reflect the personal view of the sender and not that of the company.

--
Thanks and regards,

Vineet Sharma
Hanmer MS&L|Member of PUBLICIS GROUPE)
E-228, Ground floor, East of Kailash New Delhi – 110065
M: +91 9999870197 B: + 91-11-46517700
F: +91-11-46517799
E-mail: vineet@hanmermsl.com
WebSite: www.hanmergroup.com

Information contained in any e-mail transmitted from or on behalf of Hanmer MS&L Communications Pvt. Limited are confidential and intended solely for the addressee(s) and may be legally privileged or prohibited from disclosure and unauthorized use. No legally binding commitments will be created by this E-mail message. Hanmer MS&L Communications Pvt. Limited may not be held responsible for the content of this email as it may reflect the personal view of the sender and not that of the company.