Finance Minister Arun Jaitley is presenting his ministry's third budget today at the Union Budget 2016. The FM proposed the "nine pillars of the transformation 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 to all cars costing over Rs 10 lakh.
Also, private players will now be allowed to venture into the public 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 three out of the first five years". 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. The total investment on all these projects is Rs 1 lakh crore.