Reduce exise duty to 14 per cent: CII
In a bid to reduce the incidence of taxation, industry chamber CII has recommended the reduction of excise duty rate from 16 per cent to 14 per cent.
By PTI |
NEW DELHI: In a bid to reduce the incidence of taxation, industry chamber CII has recommended the reduction of excise duty rate from 16 per cent to 14 per cent.
In its pre-budget memorandum, CII has asked for reduction of excise duty on processed foods, pesticides, energy efficient triphosphor fluorescent lamps, electric fans, caprolactum and two wheelers to 8 per cent from 16 per cent, on all types of cars to 16 per cent from 24 per cent and from Rs 400 to Rs 350 per tonne on cement.
Currently, most manufactured products attract 16 per cent excise duty and 12.5 per cent Value Added Tax (VAT).
In the memorandum, CII has suggested to the government to allow full Central Value Added Tax Credit (CENVAT) on capital goods on the date of the receipt and allow payment of excise on used capital goods at the time of removal either on transaction value or on the depreciated value, as against the present provision of reversal of full CENVAT credit.
The Government should allow CENVAT credit on Light Diesel Oil and High Speed Diesel used for generation of power or in the process of manufacture and relax the requirement of pre-authentication of invoices for assesees paying excise duty of more than Rs 5 crores.
The chamber also said there should be a fixed time limit for review of abatement rate by the Advisory Committee on Abatement and give feedback of the findings of the committee to the applicant. CII has also drawn the government's attention for implementation of its earlier proposal of bringing down the Central Sales Tax rate from 4 per cent to 2 per cent from April 1, 2007 and further reducing it to nil.
For increasing the revenue from service tax, CII has suggested to bring more services under the tax rate, but maintain the tax rate at the existing level of 12 per cent.
CII has also urged the government to indicate and initiate concrete steps for implementation of the Goods and Services Tax (GST) so that the common tax can be in place by 2010, as had been committed by the Finance Minister in this year's budget.
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