RTTNews - The Indian government will increase the rates of excise duty and service tax in the Budget next month to harmonize them with the proposed Goods and Services Tax (GST), scheduled to be introduced from next fiscal, reports PTI, citing international accounting and consulting firm Deloitte.
The firm said that the government was likely to roll back the 6% cut in excise duty rates and 2% cut in services tax in three stimulus packages. The consulting firm also was expecting a cut in indirect tax reduction made in the fiscal stimulus packages during December 2008 and February 2009.
Deloitte Touche Tohmatsu India Senior Director (Indirect Tax) M S Mani said that some directional clarity on the GST and service tax and excise duty rates could be increased to facilitate transition to the proposed GST regime. The GST is supposed to fuse almost all indirect taxes at the Centre and states replacing excise duty, service tax at the Central level and VAT at the state level.
The firm also predicted that custom duty on crude oil might be brought back to bring in fresh revenue streams for the government to rein in mounting fiscal deficit.
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