Excise Duty on ‘Demerit’ Goods Hiked as a Measure for Additional Resource Mobilisation
The Union Budget 2012-13 proposes to increase excise duty on ‘demerit’ goods such as certain cigarettes, hand rolled bidis, pan masala, gutka, chewing tobacco, unmanufactured tobacco and zarda scented tobacco. While presenting the Budget in Parliament today, the Finance Minister Shri Mukherjee proposed to enhance cess on crude petroleum oil produced in India to Rs. 4500/- per metric tonne from Rs. 2500/- per metric tonne under the COIL Industries Development Act.
In order to further garner additional resources, the Finance Minister has proposed to enhance basic customs duties on completely built units of large cars/ Multi-Utility Vehicles/ Sports Utility Vehicles having engine capacity above prescribed threshold from 60 percent to 75 per cent ad valorem.