Raise excise, customs duties: Expert

Mumbai, Jan 6 (UNI) A renowned tax consultant and columnist today advocated for higher rates of excise and customs duties, but opposed the Centre's move to introduce a new cess on healthcare and hike in education cess.

Addressing a daylong workshop on Exim Related Excise Matters held here by Princeton Academy, T N C Rajagopalan said ''Lots of media reports pouring in suggest that the Centre wants to raise the education cess on the excise duty from presently existing two per cent to four per cent during the forthcoming annual budget, which is totally unjustified.'' He said there are too many exemptions in the law, which need to be rationalised. The other significant thing pointed out by him is simplification of the laws that are too complicated, often creating confusion. Sometimes, it becomes quite difficult to understand excise provisions relating to export rulings.

Mr Rajagopalan later told UNI that ''I do not think personally that there will be any change in the excise rates or even there will be any hike in the service taxes''. In fact services taxes should not be raised as compliance was more important, he added.

''It would be nice if the Government reduces the services tax from the current 12.2 per cent to 10 per cent,'' he said while reacting to the Centre's move to raise the services tax from 12.5 per cent to 14 per cent.

The objective of the workshop, which would also be held at places like New Delhi and Kolkata by Princeton Academy, is to apprise the executives involved in export and import about the statutory provisions, departmental circulars and relevant case laws on central excise matters relating to imports and exports.

UNI