Budget 2008: Excise duty on buses, small cars & 2-3 wheelers reduced
Written by Hari   
Saturday, 01 March 2008

General CENVAT lowered to 14 percent

The Finance Minister  has proposed to reduce the general  CENVAT rate on all goods from 16 to 14 per cent with a view to give a stimulus to the manufacturing sector.  In  the General  Budget 2008-09 proposals, Shri P. Chidambaram has announced  reduction in the excise duty in the growth  and employment driving sectors.  Accordingly,  the excise duty has been lowered in the undernoted sectors : 

-On buses and their chassis, excise duty reduced from  16 p.c. to 12 p.c.

-Excise duty reduced on small cars from 16 p.c. to 12 p.c. and on hybrid cars lowered from 24 p.c. to the general revised rate of 14 per cent.

- On two wheelers and three-wheelers, duty reduced  from 16 p.c. to 12 p.c.

-On all goods produced in the pharmaceutical  sector, excise duty lowered from 16 per cent to 8 per cent

“These sectors are important because they are growth and employment drivers. Some of them also have large externalities,” Chidambaram said. 

The industry hailed the  decision to reduces the central sales tax from three per cent to two per cent and the cut in excise duty for items such as two-wheelers and small cars. This move will benefit the Tata’s Nano project that is coming up at the company’s Singur plant. 

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