Budget 2012-13: Excise, service tax rates may be increased

NEW DELHI: Finance Minister Pranab Mukherjee is likely to hike excise and service tax in the general budget, said Dinesh Thakkar, CMD, Angel Broking.

"We are expecting excise and service tax to be raised from 10% to 12% as well as some kind of reassurance of implementation of DTC in FY14, besides some announcements on the removal of MAT on SEZ and the roadmap on mining reforms," Thakkar said.

He added that from an investment perspective, investors should wait and take a decision after the budget.

"It would be advisable for investors to take at least 50% exposure to whatever investments they want to make and 50% can definitely wait if we get some good reaction," he said.

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Thakkar said the markets will be hit if the FM goes slow on fiscal consolidation.

"I am not expecting anything negative and we have seen that this government has been in power for the last 7-8 years. It has not done anything which will make the market nervous. Having said this, may be if at all this budget proves to be very populist and they do not give a proper care to fiscal prudence and increase corporate tax and all that, that will spook the market," he said.