Govt plans to withdraw tax exemption on most consumer items

New Delhi, Apr 10 (UNI) If the government proposal to withdraw excise and customs on a large number of goods is put into effect, items of daily use including tooth powder, pencils and parts of pens, sports goods, bicycles, kerosene pressure lantern, wheeled toys, dolls will cost more.

Even the airfare by airlines may have to be revised, as the government plans to withdraw the excise exemption to the aviation turbine fuel.

Accredited journalists who were entitled to bring in personal computers, including lap top upto Rs one lakh without any customs will have to pay duty on their imports.

Excise duty exemptions enjoyed so far by aviation turbine fuel,surgical rubber gloves or medical examination rubber gloves, tyres, flaps and tubes used in the manufacture of power tillers, mosquito nets impregnated with insecticide, stoneware, which are only salt glazed and rough opthalmic blanks, for manufacture of optical lenses can also be withdrawn.

The other excise benefits proposed include mathematical boxes of students including geometry boxes and colour boxes.

The Finance Ministry has published a list of customs and excise duty exemptions proposed to be withdrawn and sought views from the concerned parties.

''Government has identified a number of exemption notifications which can be removed,'' an official statement said. However, the exemption for the SSI sector will remain unchanged. Finance Minister P Chidambaram had made his intentions known in his Budget speech, the statement added.

The Finance Bill 2006 and the Budget has already been passed by Parliament.

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