- Edible oil, vanaspati to attract specific duty
- Small powerlooms out of excise net
- 100% tax exemption for offshore banking units
Finance Minister Jaswant Singh today restricted the exemption on the long-term capital gains tax to Bombay Stock Exchange (BSE)-500 stocks and public issues during the year.
He also levied a specific rate of Re 1 a kg on refined edible oils and Rs 1.25 on vanaspati to check evasion and increase in prices, exempted powerlooms with turnover of less than Rs 25 lakh from the excise net and extended more tax incentives to special economic zones and units therein.
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Singh was replying to the debate on the Finance Bill, 2003, which was passed by the Lok Sabha today. He also clarified that high-premium insurance policies purchased after April 1 would come into the tax net.
The minister said he would consider waiving the service tax on vocational courses institutes and computer institutes, as well as taxes on religious places for conducting marriages and other social functions.
He said the imposition of the excise levy on tobacco products manufactured in the Northeast with retrospective effect would also be reviewed.