CII wants excise duty cut by 2 per cent: pre-budget
18 Dec 2006
New
Delhi: The Confederation of Indian Industry (CII)
has recommended cutting the excise duty from 16 per
cent to 14 per cent in its pre-budget memorandum.
The
CII has asked for reduction of excise duty on processed
foods, pesticides, energy efficient triphosphor fluorescent
lamps, electric fans, caprolactum and two wheelers to
8 per cent from 16 per cent, on all types of cars to
16 per cent from 24 per cent, and to Rs350 per tonne
from Rs400 on cement.
At present most manufactured products attract 16 per cent excise duty and 12.5 per cent Value Added Tax (VAT).
In
the memorandum, CII has suggested full Central Value
Added Tax credit (Cenvat) on capital goods on the date
of receipt and allowing payment of excise on used capital
goods at the time of removal
either on the transaction value or on the depreciated
value, as against the present provision of reversal
of full Cenvat credit.