Finance Ministry Consultation with Industry Majors

The Finance ministry has started consulting with Industry Majors about the 2008-09 budget on 22nd November. The Revenue secretary has fixed some meetings with the majors from different industrial sector to discuss several budget issues.

Excise Duty:

The government is planing to reduce the rate of excise duty from the current level, which is 16%, by 2%, for the industrialists’ think this would help them to make the price level low.

Demand from the Cement Industry:

• The cement industry had raised the prices in the 2007-08 budget due to which it was subject to a lot of criticism. Therefore, this year, the cement industry is also seeking low excise duty.
• The manufacturers of cement increased the price by 12 rupees per kilogram. So, in the new budget the government will implement a differential regime for the excise tax. Moreover, the government may permit easy imports through a reduction in custom duty.
• The countervailing duty will not be imposed on the imported cement. The government may introduce a two tier structure for the Goods and Service Taxes which will relate the Center to all the states.

Proposals Regarding the Goods and Service Tax:

After the Value Added Tax, the Goods and Service Tax(GTS) will be highlighted as the next big measure of tax rationalization in the indirect tax structure. It will be applicable from 2010. The industry majors have proposed the government to follow the international rate of Goods and Service Tax and that is 16%.