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Indirect tax rates unchanged
July, 06th 2009

The government today retained the broad rate structure for all indirect taxes, which will dent its kitty under this head by 16.11 per cent this fiscal compared to projections a year ago.

The government's collection from indirect taxes is pegged at Rs 2.69 lakh crore for this fiscal, a way down from the Rs 3.21 lakh crore Budget Estimate for 2008-09.

This is despite the fact that the net of service tax has been expanded, excise duty on some goods like LPG, nylon and yarn raised from 4 per cent to 8 per cent and customs duty imposed on set-top boxes which would give an additional Rs 2,000 crore.

The government realised a low indirect tax revenue at around Rs 2.81 lakh crore in 2008-09 against budget estimates of Rs 3.21 lakh crore.

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