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Highlights of Union Budget Part B

  • Fiscal deficit for 2002-2003 pegged at 5.3 of the GDP.
  • No change in personal income tax rates; the rates of 10, 20 and 30 per cent and corporate tax at 35 per cent.
  • Corporation tax rate applicable to foreign companies has been reduced to 40 per cent from 48 per cent.
  • Additional depreciation at the rate of 15 per cent on new plant and machinery has been proposed for setting up a new industrial unit or for expanding the capacity by 25 per cent.
  • Capital gains exemption under 54 EC on amounts invested in bonds issued by Small Industries Development Bank of India and National Housing Bank.
  • Service tax extended to new sectors, including corporate bodies.
  • The scheme of excise duty assessment extended to nine more categories.
  • Sixteen per cent special excise duty abolished on a number of items; confined to 8 items only.
  • LPG, kerosene, auto CNG and diesel engine up to 10 HP to attract central value added tax at the rate of 16 per cent.
  • Cigars, cheroots and cigarillos of tobacco or tobacco substitutes also to attract 16 per cent CENVAT.
  • Excise duty of 4 per cent imposed last year on certain items has been doubled. Some more items to attract 4 per cent excise duty.
  • Changes in the duty structure of petroleum products; cess on indigenous crude oil doubled, ad valorem excise duty rate on motor spirit reduced from 90 per cent to 32 per cent, but to attract a surcharge of Rs 6 per litre.
  • Special incentive for textile industry for modernisation.
  • Excise duty to be half for refineries in the northeast.
  • Air travel to and from the northeast states exempted from Inland Air Travel Tax.
  • Exemption from service tax on services by hotels extended for one more year to help the tourism industry.
  • Excise duty on tea reduced by half to Re 1 per kg.
  • Specified anti-AIDS drugs exempted from excise duty.
  • Customs duty peak rate reduced to 30 per cent from 35 per cent as part of the effort to have only two basic rates of customs duties by 2004-05.
  • Basic customs duty on seconds and defectives of steel increased to the bound rate of 40 per cent.
  • Customs duty reduced to 10 per cent on a number of refractory raw materials to reduce production costs in steel industry.
  • CENVAT duty reduced to one rate only (16 per cent) in the next two years.
  • A surcharge of five per cent across the board on all categories of taxpayers has been imposed while abolishing the surcharge of two per cent imposed last year.
  • Ten per cent reduction in customs duty on copper, zinc, lead, aluminium and tin.
  • Customs duty on specified equipment for modernisation of infrastructure at ports and airports reduced to 10 per cent
  • Special economic zones entitled to procure duty free equipment, raw materials and components.
  • Zero duty regime proposed on IT products from 2005.
  • Customs duty reduced to five per cent on a number of hardware inputs and to 15 per cent on certain capital goods.
  • Cellular phones and pagers exempted from counter vailing duty; basic customs duty raised from five per cent to 10 per cent.
  • Customs duty on various agricultural products increased; tea and coffee to attract 100 per cent duty.
  • Customs duty on non-PDS kerosene reduced from 35 per cent to 25 per cent, but increased from 5 per cent to 10 per cent on kerosene sold under PDS scheme as part of rationalisation measure.
  • Expenditure tax on hotels to apply only on room charges exceeding Rs 3000 per day.
  • The estimated total tax revenue receipts for the Centre have been pegged at Rs 1,72,965 crore (Rs 1729.65 billion) and the fiscal deficit at Rs 1,35,524 crore (Rs 1355.24 billion) or 5.3 per cent of GDP.
PTI

YOU MAY ALSO WANT TO READ:
Highlights of Union Budget Part-A
The Rediff Budget Special
The Rail Budget 2002-03
The Economic Survey 2001-02
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