Financial Daily from THE HINDU group of publications
Monday, Jan 09, 2006
Financial Daily from THE HINDU group of publications Monday, Jan 09, 2006 |
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Industry & Economy
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Budget Reduce excise duty on cars, MUVs: BCIC Our Bureau
Bangalore , Jan. 8 THE Bangalore Chamber of Industry and Commerce (BCIC) has said that the excise duty on passenger cars and the multi-utility vehicles (MUV) should be reduced to 16 per cent as it would help the automobile industry consolidate the gains achieved from the reduction in levy to 24 per cent. In view of the automotive industry's growth potential and rising demand for motor vehicles, the BCIC said it expected the Government to introduce the core excise rate of 16 per cent on passenger vehicles and multi-utility vehicles last year itself. In its pre-budget memorandum to the Union Finance Minster, Mr. P Chidambaram, the BCIC has also sought relief for branded jewellery. It said the Government should withdraw the excise duty on branded jewellery in view of the huge potential for value-added products such as diamond-studded products. It also suggested replacing the excise duty with an alternative levy of countervailing duty or an equivalent cess at the source of bullion import, with no claim for local manufacture/conversion and drawback and allowing this only for export of the product with a valid bank guarantee. In the case of watches, the Chamber has recommended restructuring of the excise duty to four, eight and 16 per cent on MRP of Rs 1,000, up to Rs 5,000 and above Rs 5,000 respectively as the current rates were high. The excise duty rationalisation exercise of the 1999-2000 Budget had resulted in the rates on watches priced above Rs 850 being reclassified from 13 to 16 per cent, with watches below that price level continuing to attract eight per cent.
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