In sops to middle-class ahead of the elections and to boost manufacturing, the Interim Budget Monday slashed excise duty on cars and two- wheelers, capital goods and consumer non durables and acceptance of long standing demand of one-rank-one-pension for ex-servicemen. (IE Photo: Ravi Kanojia)
Presenting the Budget in the Lok Sabha, Finance Minister P Chidambaram did not propose to make changes in the tax laws except to continue the 10 per cent income tax surcharge on ‘super-rich’ individuals and up to 5 per cent on corporates.(IE Photo: Ravi Kanojia)
“In keeping with the conventions, I do not propose to make any announcements regarding changes to tax laws,” he said in UPA-II’s last budget that sought to provide sops in indirect taxes including reliefs in service tax to storage and warehousing of rice and blood banks.
Finance minister P. Chidambram with ministers of state N.N. Meena and J.D. Seelam before leave his office to present interim budget in Parliament, in New Delhi. (IE Photo: Ravi Kanojia)
The revenue sacrifice on account of indirect tax concessions would be Rs 300 to Rs 400 crore in the 40 days remaining in the current fiscal. But a pick up in the demand and sale of products in these sectors would make up for the loss of revenue, he said in his post-Budget press briefing. ((IE Photo: Ravi Kanojia)
On continuance of the tax on ‘super-rich’ and corporates, he said he has left it to the new government to review the impost that was slapped in the last budget. The concessions will be valid up to June 30 and can be reviewed by the new Government.
Finance minister P. Chidambram with ministers of state N.N. Meena and J.D. Seelam before leave his office to present interim budget in Parliament, in New Delhi (IE Photo: Ravi Kanojia)
In a major relief to ex-servicemen who have been demanding one-rank-one-pension for long, the Minister announced that the government has accepted it in principle for which an allocation of Rs 500 crore has been made.(IE Photo: Ravi Kanojia)
The concessions aimed at the middle-class and to boost the automobile sector that has been registering a negative growth, include a slashing of excise duty from 12 to 8 per cent on small cars, motor cycles, scooters and commercial vehicles and 6 per cent cut to 24 per cent on SUVs.
Interim budget session being broadcast on the screen at Stock exchange in Mumbai. (IE Photo: Ganesh Shirsekar)