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Other proposals for Indirect Taxes
- Given the imperative for fiscal correction, standard rate of excise duty to be raised from 10 per cent to 12 per cent, merit rate from 5 per cent to 6 per cent and the lower merit rate from 1 per cent to 2 per cent with few exemptions.
- Excise duty on large cars also proposed to be enhanced.
- No change proposed in the peak rate of customs duty of 10 per cent on nonagricultural goods.
- To stimulate investment relief proposals for specific sectors - especially those under stress.
Agriculture and Related Sectors
- Basic customs duty reduced for certain agricultural equipment and their parts;
- Full exemption from basic customs duty for import of equipment for expansion or setting up of fertiliser projects upto March 31, 2015.
Infrastructure
- Proposal for full exemption from basic customs duty and a concessional CVD of 1 per cent to steam coal till 31st March, 2014.
- Full exemption from basic duty provided to certain fuels for power generation.
Mining
- Full exemption from basic customs duty to coal mining project imports.
- Basic custom duty proposed to be reduced for machinery and instruments needed for surveying and prospecting for minerals.
Railways
- Basic custom duty proposed to be reduced for equipments required for installation of train protection and warning system and upgradation of track structure for high speed trains.
Roads
- Full exemption from import duty on certain categories of specified equipment
needed for road construction, tunnel boring machines and parts of their assembly.
Civil Aviation
- Tax concessions proposed for parts of aircraft and testing equipment for thirdparty maintenance, repair and overhaul of civilian aircraft. Manufacturing.
- Relief proposed to be extended to sectors such as steel, textiles, branded readymade garments, low-cost medical devices, labour-intensive sectors producing items of mass consumption and matches produced by semi-mechanised units.
Health and Nutrition
- Proposal to extend concessional basic customs duty of 5 per cent with full exemption from excise duty/CVD to 6 specified life saving drugs/vaccines.
- Basic customs duty and excise duty reduced on Soya products to address protein deficiency among women and children.
- Basic customs duty and excise duty reduced on Iodine.
- Basic customs duty reduced on Probiotics.
Environment
- Concessions and exemptions proposed for encouraging the consumption of energy-saving devices, plant and equipment needed for solar thermal projects.
- Concession from basic customs duty and special CVD being extended to certain items imported for manufacture for hybrid or electric vehicle and battery packs for such vehicles.
- Proposal to increase basic customs duty on imports of gold and other precious metals.
Additional resource mobilisation
- Proposals to increase excise duty on ‘demerit’ goods such as certain cigarettes, hand-rolled bidis, pan masala, gutkha, chewing tobacco, unmanufactured tobacco and zarda scented tobacco.
- Cess on crude petroleum oil produced in India revised to Rs 4,500 per metric tonne.
- Basic customs duty proposed to be enhanced for certain categories of completely built units of large cars/MUVs/SUVs.
Rationalization measures
- Excise duty rationalised for packaged cement, whether manufactured by minicement plants or others.
- Levy of excise duty of 1 per cent on branded precious metal jewellery to be extended to include unbranded jewellery. Operations simplified and measures
taken to minimise impact on small artisans and goldsmiths.
- Branded Silver jewellery exempted from excise duty.
- Chassis for building of commercial vehicle bodies to be charged excise duty at an ad valorem rate instead of mixed rate.
- Import of foreign-going vessels to be exempted from CVD of 5 per cent retrospectively.
- Duty-free allowances increased for eligible passengers and for children of upto 10 years.
- Proposals relating to Customs and Central excise to result in net revenue gain of Rs 27,280 crore.
- Indirect taxes estimated to result in net revenue gain of Rs 45,940 crore.
- Net gain of Rs 41,440 crore in the Budget due to various taxation proposals.
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