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Ahead of the Union Budget 2015, industry chamber Confederation of Indian Industry (CII) has urged the Government to not hike excise duty, retain customs duty peak rate at 10 per cent, and reduce Central Sales Tax rate from 2 per cent to 1 per cent in view of delay in implementation of GST.
“Demand is fragile and manufacturing sector continues to be vulnerable. Under these circumstances, it would be prudent to allow excise duties to remain at current 12 per cent,” said Chandrajit Banerjee, Director General, CII.
Also, the industry should be allowed to participate in the Task Force on Revenue Neutral Rate (RNR) and other issues such as Integrated GST, Place of Supply Rules and draft GST legislation, the statement from CII said.
The industry body has also advocated for reduction in excise duty on automotive parts where the applicable rate is higher than that applicable on the automobiles, thus leading to anomalies.
Regarding customs duties, peak rates should be retained at current 10 per cent, the statement said. “Lowering peak customs duties will act against the ‘Make in India’ campaign,” Banerjee added.
In view of the delay in implementation of GST, the industry chamber has called for reduction in Central Sales Tax rate from 2 per cent to 1 per cent and added that the services tax rate should be maintained at current 12 per cent.
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