BUDGET - BMR Advisors

sales price exceeds Rs 3,800 per tonne but does not exceed Rs5,000 per tonne without any provision for abatement.Abatement on Maximum Retail Price (MRP) is provided by theGovernment on goods which are liable to ad-valorem rate of dutywith reference to MRP. Such abatement is provided to take careof local taxes, freight, commission on sale and incidentalexpenses which normally do not form part of the assessablevalue.Further, cement industry attracts multiple rates of excise dutydepending on MRP and nature of packing (packaged / bulk),which further varies according to the producer (mini-steel plant /other plant) and quantum of clearance.It is proposed that:• An appropriate abatement on excise duty be given tocement (other than white cement) where retail sales priceexceeds Rs 3,800 per tonne but does not exceed Rs 5,000per tonne to reduce effective rate of duty• In other cases, rationalize excise duty structure on cementRe-imposition of CVD on cement importsGovernment, in order to encourage imports last year, reducedthe customs duty to zero per cent and withdrew CVD on importof cement. However, the excise duty on cement was increasedby 50 percent. These measures have brought in distortion tolevel-playing field between domestic production and import ofcement.It is proposed that CVD be re-imposed on cement imports, so asto provide a level-playing field for the domestic manufacturers.Reduction of excise duty on steelSteel is an important element of all infrastructural projects.Currently, steel is liable to excise duty at the rate of 16 percent.The excise duty on steel is proposed to be reduced to 12 percentin the upcoming Union Budget 2008.This will reduce the cost of infrastructure projects and thus willboost infrastructural development of the country.50indiaBUDGET2008