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Bangalore, Aug 18: Union finance minister Yashwant Sinha said on Tuesday that the government planned to introduce three-tier excise rates as part of its efforts to perk up the economy and achieve a higher growth trajectory.
Bangalore, Aug 18: Union finance minister Yashwant Sinha said on Tuesday that the government planned to introduce three-tier excise rates as part of its efforts to perk up the economy and achieve a higher growth trajectory.
The existing eight to nine excise rates would `coalesce' into three rates which would be a `enormous step forward' in simplifying excise duties, he told reporters here.
Sinha said the proposed broad classification--mean rate, merit rate and demerit rate--would take the pattern of consumption into account before fixing the rates.
He also noted that six working groups on excise and customs had been formed to prepare the ground for `major initiatives' that required to be taken in the next year's budget.
The groups were expected to submit their reports before October 31, he said, adding, "We are thinking of major simplification on the customs and excise sides."
The government, Sinha said, had planned a two-pronged strategy to increase its own and public-sector expenditure on areas including infrastructure and housing and to clear all pending private sector projects.
He said the only fast-track project pending was the Cogentrix power project, which was before the Supreme Court. "There is nothing that we can do about it until the matter is settled by the Supreme Court," he said.
The government, he said, was reviewing externally-aided projects with various ministries and state governments "so that they could go ahead with the speed with which they should be implemented".
"With all these steps, the economy will witness a turnaround and have a higher growth trajectory," Sinha said. On inflation and lower exports, Sinha said these were two areas of concern. On the export front, he said, "We are subject to a whole lot of factors in the external situation that has affected the exports growth."
He said a package to boost exports had recently been announced and added that the finance ministry and commerce ministry were planning measures "which will make life easier for exporters".
On Inflation, he said much of the increase in the Wholesale Price Index was attributable to `seasonal factors' and the government expected that when the "new crops start coming into the market, it will take care of the increase in prices".
Addressing an interactive session organised by the Confederation of Indian Industry (CII) earlier in the day, Sinha said a task force has been set up under the special secretary banking to sort out the problems of the non bank finance companies (NBFCs). The task force will submit its report by September 15 and will recommend at relaxation in some of the stringent measures put forth by the Reserve Bank recently. Amendments to the existing legislations government NBFCs are also on the cards and these two measures will help revive some of the NBFCs in the country. "NBFCs should be allowed to play their due role but under supervision," Sinha said.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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