Budget 2001: Full Coverage

While the 16 per cent Cenvat slab had accounted for 68 per cent of therevenue from ad valorem duties, the proposed measures would take this to 80per cent. The combined rate of 32 per cent would yield another 17 per cent.The changes would lead to a net rise in excise revenues of Rs 4,677 crore.

Thus all goods attracting 8 per cent Cenvat will now be subject to 16 percent. However, "in the larger public interest", the 8 per cent slab remainsfor cotton yarn, LPG, kerosene and diesel engines up to 10 HP.

Accordingly, a 15 per cent surcharge on excise would be slapped oncigarettes, and the total duty on pan masala raised to 55/60 per cent.The duty on beedis would go up from Rs 6 to Rs 7 per thousand.

Matches will now attract excise at the rate of 50 paise on handmade boxes,Re 1 on medium and Rs 2 on the semi-mechanised matchbox sector.

Products that attract 32 per cent will continue in that bracket, whilespecial cements, pleasure boats, arms and ammunition for private use willattract a 16 per cent SED, totalling 32 per cent duty in all.

In a dual-purpose move to discourage use of a range of products on healthgrounds, and to generate funds on a regular basis for the National CalamityContingency Fund, the finance minister has proposed a special surcharge onexcise duty on tobacco-related items.

Duty on diesel, which was reduced to 12 per cent, has also been restored to16 per cent Cenvat, while petrol would attract again a 16 per cent SED.

Terming it as a technical correction, the minister said the benefit wouldnot be passed on to the consumer.

In order to curb wastage of fruits and vegetables, the finance minister hasproposed to wholly exempt food preparations based on these from excise.

This would include a wide variety of products "of common use" like pickles,sauces, ketch-up and juices, etc.