Pranab likely to retain 10% excise duty i Budget

Finance minister Pranab Mukherjee is likely to retain standard excise duty at 10% in the Budget 2012-13, a move that would give some respite to corporate India as industrial growth is expected to moderate next fiscal on account of the slowing down of the economy. According to an official involved in the Budget-making process, given that excise collection has shown only moderate growth this fiscal on account of high interest rates and torpid consumption demand, a hike in excise duty is not under consideration.Also, in the goods and service tax (GST) regime, the combined Centre-State rate is expected to finally settle at 16% (although in the initial two years, the rate would be higher), which leaves no room for an increase in excise duty now. State Vat rate for most items is 12.5% at present.

Source: Financial Express