labels: confederation of indian industry, union budget 2007
CII wants excise duty cut by 2 per cent: pre-budget news
18 December 2006

New Delhi: The Confederation of Indian Industry (CII) has recommended cutting the excise duty from 16 per cent to 14 per cent in its pre-budget memorandum.

The CII has asked for reduction of excise duty on processed foods, pesticides, energy efficient triphosphor fluorescent lamps, electric fans, caprolactum and two wheelers to 8 per cent from 16 per cent, on all types of cars to 16 per cent from 24 per cent, and to Rs350 per tonne from Rs400 on cement.

At present most manufactured products attract 16 per cent excise duty and 12.5 per cent Value Added Tax (VAT).

In the memorandum, CII has suggested full Central Value Added Tax credit (Cenvat) on capital goods on the date of receipt and allowing payment of excise on used capital goods at the time of removal either on the transaction value or on the depreciated value, as against the present provision of reversal of full Cenvat credit.

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CII wants excise duty cut by 2 per cent: pre-budget