And CII wants 10% customs duty

By Vijay Kumar

In its pre-budget memorandum to the government, the Confederation of Indian Industry has pointed out that several products continue to have high duty rates despite the reduction of peak rates to 12.5 percent in March this year.

They have suggested

1. simplification and greater transparency in indirect tax administration

2. further cut in the peak rates from 12.5 percent to 10 percent.

3. cut in central sales tax - from 4 percent to 2 percent.

4. rectification of the anomaly where the inputs attracts higher duty than the product itself.

5. removal of customs duty for life saving drugs and security related items

6. removal of exemption of the countervailing duty - on projects and various other internal taxes such as CST and value added tax.