Special excise duty abolished on number of items
Finance Minister Yashwant Sinha on Thursday announced abolition of 16 per cent special excise duty on a number of items to ''revive demand, promote investment, accelerate economic growth and enhance productivity''.
Presenting the budgetary proposals for 2002-03 in Lok Sabha, Sinha however, decided to continue the duty on motor cars, multi utilitiy vehicles, tyres for replacement, aerated soft drinks, soft drink concentrates, airconditioners, pan
masala, chewing tobacco and miscellaneous tobacco preparations and polyster filament yarn.
He said LPG, Kersone, auto CNG and diesel engines upto 10 HP will also attract 16 per cent special excise duty in the form of central value added tax. Cigars, cheroots and cigarilos of tobacco or tobacco substitutes shall also attract
16 per cent CENVAT.
Sinha also clarified that excise duty at a moderate rate of 4 per cent on a few items imposed last year has been increased to 8 per cent. Besides a 4 per cent excise duty has been imposed on a few more items, which remained exempted so far.
Stating that significant rationalisation of the excise duty structure has been achieved with a number of rates having been reduced and procedure made more transparent than before, Sinha said the rationalisation in the duty structure last year had considerably reduced disputes and the litigation and the cost of compliance to the assessees.
''Above all, it has put in place a system, which is stable, just and rational'', he said adding ''we only need to refine it further''.
The tax proposals are also aimed at widening the tax base, rationalisation and simplification of tax structure and encouraging voluntary compliance, Sinha added.
PTI
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