For small-scale industry (SSI), the annual turnover ceiling for claiming exemption from excise duty raised from Rs 3 crore to Rs 4 crore.
More goods brought under the Cenvat rate of 16 per cent. These include polyester filament yarn, tyres and air conditioners.
Duty on motor cars and aerated drinks to continue at 24 per cent.
In the textiles sector, independent texturisers given option to avail of the exemption route or pay eight per cent excise duty with Cenvat credit.
Surcharge of Re 1 per kg on tea abolished.
Duty of Re 1 per kg on refined edible oils and Rs 1.25 a kg on vanaspati abolished.
Duty on iron industry cut to 16 per cent.
Duty on molasses raised from Rs 500 per tonne to Rs 1000 per tonne and on cement clinkers from Rs 250 per tonne to Rs 350 per tonne.
Duty rates on cigarettes raised by 10 per cent.
Ten per cent surcharge imposed on ad valorem duties on other tobacco products including gutkha, chewing tobacco, snuff and pan masala.
Bidis continue to be exempted from levy.
TAXES ON PETROLEUM PRODUCTS
Cess on petrol and diesel raised by 50 paise a litre to fund the National Highways Development Project.
Customs duty on crude petroleum reduced from 10 per cent to five per cent.
No excise or Customs duty on LPG for domestic consumption and on subsidised kerosene.
Customs duty on other petroleum products, including motor spirit and diesel, down from 20 per cent and 15 per cent to 10 per cent.
Excise duty on petrol and diesel to be fixed as a combination of ad valorem and specific duties.
Duty drawback rates for exported goods to be reviewed and modified by April 30.
SERVICE TAX
Tax rate maintained at 10 per cent but new services added to the list and small service providers spared of tax.
Service providers with gross turnover not exceeding Rs 4 lakh a year exempted from tax.
New services brought under tax net include pipeline transport of goods, site formation, demolition and related services, membership fees of clubs and associations, packaging and specialised mailing services, survey and map-making, dredging in rivers and harbours, cleaning services for commercial buildings and construction of planned residential complexes with over 12 dwelling units.
