Govt set to earn extra 40,000 cr after increase in excise and petro duties
merisarkar news service
New Delhi, February 27, 2010
Govt. all set to earn additional Rs. 40,000 crores
After presenting the budget, Union government said on Sunday that it is set to earn additional Rs 40,000 crore from the hike in excise and restoration of duties on petroleum products.
Center govt. is also expected to lose Rs 21,000 crore due to income tax sops.
Revenue Secretary Sunil Mitral told reporters in New Delhi that 14,000 crore would come from excise duty hike and Rs 26,000 crore from petro duties.
In this year's general budget union government restored the general excise duty to the previous rate of 10 per cent. Govt. had lowered the duty from 10 to 8 per cent as a part of stimulus package given to deal with the recession last year.
The govt. also restored earlier level of duties of petro products.
The government is hoping to gain additional Rs. 3,000 crores by imposing service tax on 8 new segments. Officials say that the govt. expect to earn additional Rs. 2,000 crores from the clean energy cess imposed on the coal.
Mr. Mitral told reporters that some other changes in the indirect tax will rake in another Rs. 1,500 crores taking the total additional earning of the government to Rs. 46,500 crores.
On the direct taxes front, the govt. is set to lose Rs. 21,000 on account of the changes in the slabs. The reduction in surcharge from 10 per cent to 7.5 per cent on corporate taxes in Rs 5,000 crore.
Exemptions on investments in infrastructure bonds will result in a loss of Rs 6,000 crore.
However, increasing in the MAT form 15 to 18 per cent on book profits of companies that do not fall under the tax net because of various exemptions will balance out the loss of Rs. 6,000 crores to government.
