Ad valorem on petrol and diesel reduced from 8 to 6 per cent

New Delhi, Feb 28 (UNI) Finance Minister P Chidambaram today proposed to reduce the ad valorem component of Excise Duty on petrol and diesel from 8 per cent to 6 per cent.

Presenting the General Budget 2007-08 in the Lok Sabha, the Minister proposed to grant relief from excise duty in deserving cases especially the job creating sectors. He also raised the exemption limit for small scale industry from Rs one crore to 1.5 crore; biscuits whose retail sale price does not exceed Rs 50 per kg exempted fully from excise duty; all kinds of food mixes including instant mixes are fully exempted from excise duty; Excise duty reduced on umbrellas and parts of footwear from 16 per cent to 8 per cent; Excise duty on plywood reduced from 16 per cent to 8 per cent; and bio-diesel fully exempted from excise duty.

Mr Chidambaram fully exempted from excise duty the water purification devices operating on specified membrane based technologies as well as domestic water filters not used electricity. He also proposed to extend excise duty exemption to all pipes exceeding 200 mm in diameter used in water supply systems.

The Finance Minister proposed to reduce the present rate of excise duty of Rs 400 per metric tonne to Rs 350 per metric tonne on cement which is sold in retail at not more than Rs 190 per bag.

The excise duty on cement will be Rs 600 per metric tonne that has a higher MRP.

UNI