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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.
