[ms001]

The government on Tuesday said that the 4 per cent excise duty cut across-the-board will continue beyond March 31, 2009.

Finance Minister Pranab Mukherjee also said that the excise duty on cement will be reduced to 8 per cent from 10 per cent, while service tax will be cut from 12 per cent to 10 per cent.

The finance minister also said that the permission to states to raise more money from the market has been extended to the next fiscal year too.

Details awaited.

Good news for future buyers

Govt announces tax cuts to boost economy

[vasudeva]

Originally Posted by ms001

while service tax will be cut from 12 per cent to 10 per cent.

Means 2% lower telephone bills, lower car service cost bills, and lower restaurant bills.

[ms001]

Originally Posted by vasudeva

Means 2% lower telephone bills, lower car service cost bills, and lower restaurant bills.

It is just an election tactic , but who cares good for all of us

[aka_iitd]

yes all poltics gimmicks
Govt reduces excise duty, service tax by 2%-India Business-Business-The Times of India

[Proxima]

Originally Posted by ms001

It is just an election tactic , but who cares good for all of us

It is meant to be a stimulus to the economy.

Any updates on the prices of cars, bikes etc.?

[esteem_lover]

When can we expect cuts in direct taxes to boost the common man ?

[nikhil_d1106]

The government today announced a further 2 percent cut in excise duty in addition to the earlier cut of 4 percent. Cars should be cheaper soon!!

[icar]

Finance Minister Pranab Mukherjee today announced an across-the-board cut in excise and service tax rates, as a part of the third stimulus package to boost the domestic economy

In his reply to the interim budget speech, Mukherjee announced a two percentage point cut in service tax rates to 10 per cent.
Mukherjee also announced that on goods that attract 10 per cent excise duty will now be charged at 8 per cent. However, excise rates on items that attract 8 per cent and 4 per cent excise duty will not be changed.
The cut in excise duty have been extended beyond March 31, 2009. But Mukherjee did not specify the date till which the excise cut has been extended.
Excise duty on bulk cement has been fixed at 8 per cent or Rs 290 per tonne.
Mukherjee announced that customs duty exemption on Naptha will continue beyond March 31, 2009.

[narayan]

Originally Posted by esteem_lover

When can we expect cuts in direct taxes to boost the common man ?

I think they will not tinker with this especially after last years change in the slabs.

Rather it would be more effective if they rationalise tax structures that DIRECTLY impact spending because thats what is needed. for e.g Home loan interest/principal tax deduction limit, different luxury taxes can be reduced etc etc

[phamilyman]

For this economy to run, it needs more taxes and less subsidies.

These idiots are borrowing heavily from the future.

[luky_13]

Does this mean that Cars (and other automobiles) are going to get cheaper by 2% off the ex-showroom value (rather approximately)?

[SkyWalker]

i see service tax reduced, and taxes on select items reduced. Nothing said about reduction on duty for cars (Purchase prices).

[theMAG]

Originally Posted by phamilyman

For this economy to run, it needs more taxes and less subsidies.

Lesser subsidies yes, but more taxes? This is already one of the highest taxed countries outside of the Scandinavian trio; without any correlation to taxes collected and services/facilities offered.

What they need to do is to widen the tax net.

[m8002?]

Hi,
Anyone knows if these changes kick in immediately or only on Apr 1st 2009?

I have a my car insurance and another LIC insurance coming up for renewal in a week. Will the service tax on that be 12% or 10%?

[ms001]

they are in effect immidiately . from midnight onwards according to the official statement