BUDGET 4

In indirect taxes, Mukherjee made structural changes in
the excise duty on cigarettes, cigars and cigarillos, coupled
with some increase in rates. He also proposed to enhance
excise duty on all non-smoking tobacco such as scented
tobacco, snuff and chewing tobacco.
In addition, he proposed to introduce a compounded levy
scheme for chewing tobacco and branded unmanufactured tobacco
based on the capacity of pouch-making machines.
Attempting to pay focussed attention to agriculture and
related sectors, the Finance Minister proposed to provide
project import status with a concessional import duty of 5 per
cent for setting up mechanised handling systems and
pallet-racking systems in mandis and warehouses for foodgrain
and sugar as well as full exemption from service tax for
installation and commissioning of such equipment.
A similar status on customs duty with full exemption from
service tax will also be extended to initial setting up and
expansion of cold storage, cold room and processing units for
such produce.
Extending his goodies in excise duties in certain
sectors, he gave full exemption to toy balloons and reduction
in basic customs duty on long pepper, asafoetida and excise
duty on goods covered under Medicinal and Toilet Preparations
Act.
The Service Tax net is being expanded to include domestic
and international air journeys of all classes, health check-up
undertaken by hospitals for employees of business entities and
health services provided under health insurance schemes
offered by insurance companies. (MORE) PTI