Finance Minister Pranab Mukherjee proposes selective excise duty

Finance Minister Pranab Mukherjee proposes selective excise duty, service tax cuts, four per cent across-the-board excise duty cut to continue beyond March 31, 2009, excise duty on cement to be reduced to 8 per cent from 10 per cent, Government further cuts excise duty rate by two per cent to bring it to 8 per cent

In order to help industry cope under the pressure of the economic slowdown, the Finance Minister, Pranab Mukherjee announced several relief measures in excise duty and service tax. All these indirect tax proposals will be effective from today. A lowdown on the announcements:

1.Naptha exempted from customs duty to provide relief to the power sector; extends customs duty in Naptha beyond 31 March 2009
2.Excise duty on bulk cement to be 8 per cent or Rs 230 per metric tonne, whichever is higher
3.4% across-the-board excise duty cut to be continued beyond 31 March 2009
4.To cut excise duty by additional 2%
5. To cut service tax to 10%