Changes In Rates Of Duty


Changes In Rates Of Duty

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Proposals involving changes in rates of duty

 

Proposals involving changes in rates of duty

 
 
AMENDMENTS IN THE FIRST SCHEDULE TO THE CENTRAL EXCISE TARIFF ACT, 1985:
 
1) Education Cess and Secondary & Higher Education Cess leviable on excisable goods are being fully exempted.
Simultaneously, the standard ad valorem rate of duty of excise (i.e. CENVAT) is being increased from 12% to 12.5%.
2) Duty of excise on “waters, including mineral waters and aerated waters, containing added sugar or other sweetening matteror flavoured” falling under Chapter sub-heading 2202 10 is being increased from 12% to 18%.
 
3) Duty of excise on cigarettes is being increased by 25% for cigarettes of length not exceeding 65 mm and by 15% for cigarettes of other lengths. Increase in duty rates is also proposed on cigars, cheroots and cigarillos.
 
4) Excise duty on cut tobacco is being increased from `60 per kg to `70 per kg.
 
5) Tariff rate of excise duty on goods falling under Chapter sub-heading 2523 29 is being increased from `900 per tonne to `1000 per tonne.
 
6) Tariff rate of excise duty on high speed diesel (HSD) falling under tariff item 2710 19 30 is being increased from 14% + `5 per litre to 14% + `15 per litre. However, there is no change in the aggregate of various duties of excise on high speed diesel (HSD).
 
7) Tariff rate of excise duty on sacks and bags (including cones) of plastics falling under tariff items 3923 21 00, 3923 29 10 and 3923 29 90 is being increased from 12% to 18%
 
[Clause 104]
 
The changes at 1) to 7) will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931.
 
PETROLEUM
 
1. The Schedule Rates of the Additional Duty of Excise (commonly known as Road Cess) levied on Petrol and High Speed Diesel Oil is being increased from `2 per litre to `8 per litre. The effective rates of the Additional Duty of Excise (commonly known as Road Cess) levied on Petrol and High Speed Diesel Oil is being increased from `2 per litre to `6 per litre only.
 
[Clause 163 and 164]
 
2. Education Cess and Secondary and Higher Education Cess, presently applicable to petroleum products, including petrol and High Speed Diesel, are being exempted.
 
3. Rates of duty of excise (CENVAT) on Petrol and High Speed Diesel Oil (both branded and unbranded) are also being revised.
 
4. Tables below summarizes the changes in various duties applicable to petrol and diesel:
 

 

                     

 Thus, the total incidence of various duties of excise on petrol and diesel remains unchanged.

 

 

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