Budget may bring host of exempt items under excise duty ambit

The government may bring a host of items, such as non-instant coffee, photographic plates, printed books and brochures, under the excise duty net in the Budget 2012-13. Currently, a long list of "excisable items" fall under the zero-tax bracket and it is likely that government may put several of these items under the excise regime. This is in line with the policy of reducing the number of items on the exempt list."There is a need to expand the excise duty base as reduction in tax on petroleum products has hampered collections. The duty mop-up is also under stress due to a general slowdown in the industrial activity," an official source said.

Source: Financial Express