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Key Proposals
Direct Taxes
Assessees with income of up to Rs 60,000 will not be subject to anysurcharge. Co-operative societies to be taxed at 30% from 35% now. Direct tax proposals to result in revenue loss of Rs 5,500 crore; whichwould be made up with tax buoyancy. Loss-making companies also to file their returns. Salaried persons in the lower income range of up to Rs 1 lakh will getan enhanced tax rebate at the rate of 30% in respect of eligible investmentsunder Section 88 of the IT Act, against 20% at present. In case of EoUs and units located in EPZs, free trade zones andsoftware technology parks, the Centre has proposed to provide for thetaxation of profits from their domestic sales; 25% of their sales in thedomestic market are currently tax exempt. Tax payable on distribution of dividends of domestic companies andincome in respect of units of MFs and UTI to be reduced to 10%.Excise
Three rates of special excise duty reduced to a single rate of 16%. A surcharge of 15% on cigarettes and duty on bidis proposed. Excise duty on high-speed diesel and motor spirit to be increased to16%, 8% duty on CNG. Special excise duty on aerated soft drinks, soft drink concentrates forvending machines and motorcars to be reduced to 16% from 24%; total duty nowstands at 32%. Excise duty of 16% proposed on garments sold under a registered name. Excise duty exemption withdrawn on certain SSI products, like cottonyarn, ball or roller bearings, arms and ammunition for private use.Customs
Surcharge of 10 per cent proposed to be withdrawn; with this, peaklevel of custom duty will decline to 35% from 38.5%. Custom duty on tea, coffee, copra and coconut goes up from 35% to 70%.Custom duty on crude edible oils to be increased to a uniform rate of75% from the existing range of 35% to 55% and on refined oils to 85% from45-65%. Duty in IT and telecom products reduced to 15%. Basic customs duty on second-hand cars to be increased to 105%; totalduty rate will be over 180%. To provide a level playing field for domestic liquor producers, levy ofCVD proposed at a suitable rate on imported liquor. Basic customs duty on specified textile machinery reduced to 5% from15%. Customs duty on silk waste, cotton waste and flax fibre reduced to 15%from a range of 25 to 35%. Customs duty on soda ash to be reduced to 20%. Customs duty on polyester chips and nylon chips for manufacture offibre and yarns to come down to 25%. Customs duty on cut and polished stones reduced to 15% from 35%.Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
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