Submission of Kelkar report on indirect taxes postponed
By Our Economic Bureau | 26 Dec 2002
New
Delhi: The Kelkar Committee on Indirect Taxes, which
was scheduled to submit its final report to the government
today, is now expected to be submitted tomorrow, along
with the final report on Direct Taxes. The postponement
has occurred to due to Finance Minister Jaswant Singh
being indisposed.
The final report is expected to recommend a lower excise
duty on food products compared to the 8-per cent suggested
in the consultation paper on all food products, which
currently enjoy duty exemption, according to officials.
If the government accepts the recommendation of a specific duty on petrol and HSD instead of the ad valorem duty rate now being levied, it would be to the benefit of consumers as the existing ad valorem duty structure takes into account the global price fluctuation for the end-user.
In
the case of car manufacturers, the committee may cut the
existing duty rate from 32 per cent to 20 per cent in
a span of three years. According to officials, the rate
would stay at 20 per cent from 2005-06 onwards. It would
not be reduced to 16 per cent in 2006-07 as proposed in
the consultation paper, the officials said.
