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CII asks finance ministry not to raise excise, service tax
March, 02nd 2012

The Confederation of Indian Industry (CII) has asked the government not to increase excise and service tax in the budget amid signs of a sustained economic slowdown.
"There is a strong need for retaining the current rates of excise and service tax to spur investment," CII said in its
pre-Budget memorandum.
Led by an across-the-board slowdown, India's industrial output growth moderated to 1.8% in December from 5.9% in November.

Pulled down by slowing manufacturing output, which grew by a similar 1.8% in December, the latest index of industrial production (IIP) data released earlier this month showed a decline in capital goods outputit contracted by -16.5% in December.

The industry has rachetted up their demand for cheaper interest rates and friendlier fiscal policies to boost growth.

Finance Minister Pranab Mukherjee will present the Budget for 2012-13 fiscal on March 16.

"In the wake of deteriorating fiscal health of the government...announce initiatives that can accelerate the pace of private investments," it said.

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