Finance Minister Arun Jaitley is presenting his ministry'sthird budget today at the Union Budget 2016. The FM proposed the "nine pillars of thetransformation plan to address the growth issues across society". Important announcements include the plan to apply an additional 1 per cent cess on"luxury cars" - that would be applicable toall carscosting overRs 10 lakh.
Also, private players will now be allowed to venture into thepublic transport sector. This will be done by the amendment of the Motor Vehicle Act. The Finance Minister also announced "a 100 per cent deduction on the profits for start-ups for threeout of the first fiveyears". It's not clear whether this applies only to income tax or to service tax as well.
He further announced 1 per cent infrastructure cess on petrol, CNG and LPG cars, 2.5 per cent on small diesel cars and 4 per cent on bigger diesel cars and SUVs.
The FM also proposed spending Rs 19,000 crore for the development of rural roads. He added that nearly 85 per cent of incomplete projects are back on track. Thetotalinvestment on all these projects isRs 1 lakh crore.