Emkay Global Financial Services has come out with a report on Budget preveiw 2011-12.
Budget 2011-12 Preview Further stimulus rollback likely: Rollback of excise duty likely in select sectors: The pre-crisis excise duty at 14% was cut to 8% after the fiscal stimulus, and currently stand at 10%. With strong growth in sectors like small cars and low inflation in man-made fibers, the rate may be raised to 12%. In large cars and UV also the excise duty may be raised. Likely rollback of service tax and including more services: The service rates was spared in last budget and looking at the strong growth in services coupled with 16% GST rates in future, service tax may be increased to 12%. This would also not impact the inflation as much as the excise duty increase. There may be inclusion of more services under service tax. Customs duty on petroleum products may be reduced: With steep inflationary pressures building up in fuel items and rising subsidy bill, the customs duty on crude oil/petrochemicals/fuel products may be reduced/waived. The current duty rates are: crude oilDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
