Government Lowered Service Tax Rates by 2% and Cuts Excise Duty to 8%
MARKET UPDATES · Tags: Cuts Excise Duty to 8%, factory gate duties, Lowered Service Tax Rates by 2%, New Excise Duty rates and service tax rates, New Excise rates and service tax rates
The Congress-led UPA government on Tuesday cut factory gate duties further and lowered service tax rates by 2% lowered service tax rates as it moved to protect the economy from the impact of the global economic crisis. Finance minister Pranab Mukherjee in his reply to a debate on the 2009/10 union budget cut excise duty across the board to 8% from 10%, and reduced the service tax rate to 10% from 12% on all taxable services.
Mukherjee also said excise duty cuts of 4% unveiled earlier as part of a government stimulus package would be extended into the new fiscal year. He also reduced the excise duty on bulk cement to 8% and extended the customs cut on naphtha beyond 31 March 2009. The Lok Sabha later approved the Interim Budget by voice vote, amidst a walkout by the Opposition BJP and erstwhile supporters Left parties.
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