NEW
DELHI: After a roll-back of the fertiliser price hike the government
is now reviewing its decision to clamp an 8% excise duty on refined
edible oils (branded and packed for retail sale) and vanaspati.
``We
have recognised the problems that have cropped up after the imposition
of the 8% levy imposed on this product in the ’03-04 budget and therefore
taking a re-look at it’’, M K Zutschi, chairman of the Central Board
of Excise and Customs said here at a seminar on the implications of
the Finance Bill ’03 organised by the Federation of Indian Chambers
of Commerce and Industry (Ficci) today.
To
remain outside the excise net, industry has been wiping off brands and
retaining only the statutory markings such as the manufacturer’s name.
Players like HLL, Marico Industries and NDDB have recently made representations
to the finance ministry on this issue and suggested a couple of options,
including pruning the levy and extending it across the board (branded
and unbranded refined edible oils). Close to 94% of the domestic market
is accounted for by unbranded oil.
The
CBEC chairman, however, virtually ruled out any change in the service
tax rate proposed in the Budget. The Finance Bill has proposed raising
the service tax rate from 5% to 8% and bringing ten new services under
its ambit. According to him, there was no scope to reduce indirect tax
rates any further as these have dropped sharply over the last few years.
Mr
Zutschi also gave an indication that indirect tax collections would
be closer to the revised estimate of Rs 1,37,883 crore this fiscal.
The estimated realisation from excise and customs is Rs 87,383 crore
and Rs 45,500 crore respectively. It expects to mop up another Rs 5,000
crore from service tax.
TIMES
NEWS NETWORK
[ FRIDAY, MARCH
28, 2003 01:18:06 AM ]
