Home » Budget 2001 - 02 » Union Budget 2001-02 » Post Budget Scenario » Shipping

Post Budget Scenario


Shipping

Budget Offers
The Great Eastern Shipping Company Limited
Increase in depreciation rate to 25%

Reduction in dividend tax from 20% to 10%

The Impact
Since shipping is a capital-intensive industry, the increase in depreciation rates would increase cash flow, which would facilitate for enhancement of tonnage. Mostly, these companies rely on depreciation and internal accruals for capital expenditure. Though the industry was expecting an increase to 40%, this coupled with the reduction in dividend tax rate to 10% should give shipping companies a breather