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Budget may stress on higher indirect taxes
July, 01st 2009

Given the current backdrop in terms of lower overall tax collections, the general Budget may in fact lay stress on mopping up higher indirect taxes through a possible hike in the central excise rate as well as higher customs duties for several products.

Central excise collections are said to be down 50% so far this fiscal, while direct tax collections are lower by 1% so far this fiscal.

Apart from this, the Budget is likely to lay greater stress on better tax compliance, even as certain exemptions could be increased. Some export specific sops and a fiscal responsibility roadmap is also expected next Monday.

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