Budget exercise on – Rangarajan wants an excise cut while patel wants a Service Tax cut
The Prime Minister ' s economic advisory council head, C Rangarajan had a meeting with the FM and suggested the lowering of excise rates to stimulate growth in consumer durables.
He also advised the finance minister to increase the level of public investment to impart additional growth momentum to the Economy.
Meanwhile Civil Aviation Minister Praful Patel also met the FM and pleaded for lower taxes for aviation fuel and sought a waiver on Service Tax for the business class. If the Union Budget accommodates these demands, the airlines are likely to pass on the benefit to the passengers, resulting in the lowering of airfares.