Excise duty still a pain in cement sector
The Union Budget made little changes to the tax structure and cement was no exception. The increased allocation to rural low-cost housing under Pradhan Mantri Awaas Yojana - Gramin scheme is likely to drive a 2 per cent increase in cement demand. There was also no mention of reduction in excise duties. Cement sector attracts higher excise duty at around 12.5 per cent compared with other core industries.