LG Electronics and Pentafour Industries are among the six companies whose premises had been raided for evasion of total central excise duty of Rs 1,159.35 crore (Rs 11,593.5 million) in 2002-03, Rajya Sabha was informed on Tuesday.
The Indian government is considering additional relief packages for vulnerable sectors like MSMEs to mitigate the impact of the ongoing West Asia crisis on the economy and inflation.
The excise duty cut will translate into a reduction of Rs 9.5 a litre on petrol and Rs 7 a litre in diesel after taking into account its impact on other levies.
Calling such reports baseless, Finance Minister Nirmala Sitharaman said there was no such move under consideration.
With the levy making unbranded fuel cheaper, consumers turn away OMCs plead in vain with finance, petroleum ministries.
SIAM said excise duty must be lowered
If excise duties are revised upwards, it will affect the FMCG sector, which is witnessing sequential rise in its input costs.
Normal or unbranded diesel currently attracts basic excise duty of Rs 1.46 a litre and an additional excise duty of Rs 2 per litre.
The industry is estimated to have incurred a loss of Rs 10,000 crore (Rs 100 billion).
Cut in specific excise duty on large cars of engine capacity 2000 CC and above by Rs 5000, levy of service tax on transport through rail, coastal cargo and through inland water.
Biscuit manufacturers have sought abolition of excise duty and reduction in value added tax by as much as 4 per cent in the Budget, stating that the product is consumed by common man and also distributed as relief material.
Restoration of Customs duty on crude oil & rollback of exemptions likely.
Excise duty on most products has been capped at 12.5 per cent
Additionally, road cess on petrol was raised by Re 1 per litre each on petrol and diesel to Rs 10.
Surplus scenario emerges despite double digit growth in demand on accelerated capacity additions; seeks abatement of excise duty on cement, removal of customs duty on inputs.
The Ministry of Petroleum and Natural Gas is demanding an increase in excise duty on diesel cars with a view to discouraging consumption of subsidised fuel by personal vehicle owners.
Ludhiana's readymade garment makers on Wednesday announced shutting down of operations for a day on March 4, perturbed by the latest budget proposal, making 10 per cent excise duty on branded apparels mandatory.
Traders caution that branded jewellery customers may start opting for substitutes as high prices of previous metals and stones have already made buying any luxury items unaffordable for most of the middle class.
Amidst healthy demand, there are apprehensions of possible hike in excise duty, and hence the player seeks excise duties to be retained at current levels
The Confederation of Indian Industry (CII) has proposed a 20-point policy agenda to the finance ministry, including a conflict-linked emergency credit line guarantee scheme and tax rationalisation on energy inputs, to support MSMEs, exporters, and energy-intensive industries affected by the ongoing West Asia war.
Ahead of the Budget, the auto industry is understood to have asked the government to reduce excise duty and remove the additional Rs 15,000 tax imposed on big cars to minimise the gap with those of small cars.
Excise duty was cut by six per cent in two phases since December 2008 from a peak of 14 per cent earlier to perk up the economy, which came under the impact of deepening financial crisis.
Exemption limit for the general category of individual taxpayers will increase the liquidity.
Exemption of excise and customs duty on liquid fuels, abolition of service charge, rescheduling of loans for all textiles and clothing units will reduce pressure on the industry and will help to improve liquidity.
The increases, which follow similar hikes in mid-November, seek to take advantage of a slump in world oil prices to shore up government revenues without stoking inflation.
The factory gate duty on SUVs stands at the reduced rate of 24 per cent as against 30 per cent.
SUVs occupy greater road and parking space and ought to bear a higher tax, says FM
The Indian government has increased measures to secure fuel and gas supplies following the Strait of Hormuz closure, urging citizens to avoid panic buying. Refineries are operating at high capacity, and sufficient stocks of petrol and diesel are available nationwide.
Most of the jewellers who had reopened their showrooms in confusion on Monday, kept shutters down today at Mumbai's Zaveri Bazar and several other places, demanding rollback of the proposal.
Excise duty on small cars, motorcycles and SUVs was reduced.
'If the war continue for a longer period of time, it is just a matter of time before the government will pass on some of the price increases.'
Ruling out the implementation of value-added tax from June 1, Finance Minister Jaswant Singh on Wednesday announced several excise duty concessions on edible oil and textiles.
Finance Minister Arun Jaitley refuted the allegations saying when items of common use were being taxed, how could luxury items be kept out.
Prices of automobiles, including cars, sports utility vehicles and two-wheelers, are set to come down with Finance Minister P Chidambaram announcing a reduction in excise duty in the Interim Budget.
Even if there is an early agreement on a cessation of hostilities in West Asia, the price shock will not go away easily, points out A K Bhattacharya.
The government is considering to roll back 10 per cent excise duty on branded garments, due to large scale protest by industry bodies in many parts of the country, including West Bengal, which goes to polls next month.
The conflict may disrupt Budget 2026-2027 projections, squeezing revenues and raising subsidies, prompting fiscal adjustments and potential reforms, echoing lessons from the Covid-era shock, points out A K Bhattacharya.
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