Relief to tax-payers in budget; Re 1 hike in petrol, diesel

New Delhi, Feb 26 (PTI) The 2010-11 general budget Friday
provided considerable relief to income tax payers by raising
the slabs at two levels but hiked the central excise duty on
non-petroleum products across the board from 8 to 10 per cent
and the basic duty on crude and petroleum products besides
effecting a one-rupee increase per litre on petrol and diesel.
The entire opposition walked out of the Lok Sabha (Lower
House of Indian Parliament) during the presentation of budget
by India's Finance Minister Pranab Mukherjee, dubbing it
"highly inflationary" as he partially rolled back the stimulus
by hiking the ad velorum component of excise duty on large
cars and multi-utility vehicles by two per cent to 22 per
cent.
The budget also raised the specific rates of duty on
portland cement and cement clinker. The basic duty of 5 per
cent on crude petroleum, 7.5 per cent on diesel and petrol and
10 per cent on other refined products is being enhanced.
The central excise duty on petrol and diesel is being
enhanced by Re one per litre.
The proposals relating to customs and central excise
are estimated to result in a net revenue gain of Rs 43,500
crore for the year. The proposals for service tax, in which
government plans to bring in some more services, will result
in a net revenue gain of Rs 3000 crore for the year.
While direct tax proposals are expected to result in a
loss of Rs 26,000 crore for the year, those relating to
indirect tax are estimated to result in a net revenue gain of
Rs 46,500 crore.
Taking into account the concessions and measures to
mobilise additional resources, the overall revenue gain is
estimated to be Rs 20,500 crore for the year. (MORE) PTI