Excise Duty on buses, small cars and 2-3 wheelers reduced

The Finance Minister has proposed to reduce the general CENVAT rate on all goods from 16 to 14 per cent with a view to give a stimulus to the manufacturing sector. In the General Budget 2008-09 proposals, Shri P. Chidambaram has announced reduction in the excise duty in the growth and employment driving sectors. Accordingly, the excise duty has been lowered in the undernoted sectors :

• On buses and their chassis, excise duty reduced from 16 p.c. to 12 p.c.
• Excise duty reduced on small cars from 16 p.c. to 12 p.c. and on hybrid cars lowered from 24 p.c. to the general revised rate of 14 per cent.
• On two wheelers and three-wheelers, duty reduced from 16 p.c. to 12 p.c.
• On all goods produced in the pharmaceutical sector, excise duty lowered from 16 per cent to 8 per cent
• Excise duty on paper, paper board and articles made therefrom manufactured out of non-conventional raw materials, reduced from 12 p.c. to 8 p.c. For clearances upto 3500 MT, duty reduced to nil from 8 per cent. On certain variety of writing , printing and writing paper, the duty has been lowered from 12 to 8 per cent.

Source : Press Information Bureau

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