The standard rate of excise duty and service tax was kept unchanged. Also, no change was made in peak basic custom duty rate on non-agriculture goods.
However, the standard excise duty on cigarettes was hiked by 18%. The street was expecting a 15% hike in standard excise duty.
Here is the list of other related announcements:
To raise excise duty on non-taxi SUVs to 30% Vs 27%
To exempt vocational courses and testing services from service tax list
To reduce abatement tates on luxury apartments
To impose service tax on all AC restaurants
To up import duty on set-top boxes to 10% from 5%
To up import duty on luxury cars to 100% from 75%
Import duty on luxury bikes hiked to 75% from 60%
To include 2 services in negative list of service tax
To exempt vocational courses, testing services from service tax
Sops for low-cost housing to continue
In the previous Budget, a two percent hike in peak excise duty from 10% to 12% was announced. Then finance minister Pranab Mukherjee also proposed to set up a common tax code for service tax and excise duty.