The government is keeping a watch on the prices of 11 products on which excise was altered in the Budget, including air-conditioners, petrol, diesel and iron and steel.
The other products that are being studied include tyres, tubes and flaps, refined edible oil, vanaspati, tea, molasses, polyester filament yarn and matches.
The Central Board of Excise and Customs has also asked its field formation to initiate surveys to identify potential taxpayers and the revenue capacity. It has asked for the first set of reports by March 15 to be followed by three reports at an interval of 15 days.
The field formation has been asked to furnish details on the ex-factory price for particular brands, the excise paid, the wholesale price (including taxes) and the retail price, along with comments indicating the average percentage of input duty that will be available as credit.
Field officers have also been advised to ensure that the implementation of the proposed changes is smooth and causes no inconvenience to taxpayers. The CBEC also said special efforts would be made to guide taxpayers to understand and adopt the changes.
Finance Minister P Chidambaram had restructured the Excise and Customs duties for automobile fuels, cooking gas and kerosene sold through the public distribution system. While he maintained that the proposals were revenue neutral, oil companies had said their margins could be eroded.
In the case of air-conditioners, the benefits of a lower excise of 16 per cent instead of 24 per cent have not been passed on to the consumers because of an increase in steel prices, a key raw material. Manufacturers have already announced their decision to cut the prices of tyres and synthetic fibre.
Keeping a vigil
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