The Finance Minister, Shri P. Chidambaram has proposed to reduce the ad valorem component of Excise Duty on petrol and diesel from 8 percent to 6 percent.
Presenting the General Budget 2007-08 in the Lok Sabha today, the Minister proposed to grant relief from excise duty in deserving cases especially the job creating sectors. He has raised the exemption limit for small scale industry from Rs.1 crore to Rs.1.5 crore; biscuits whose retail sale price does not exceed Rs.50 per kilogram exempted fully from Excise Duty; all kinds of food mixes including instant mixes are fully exempted from excise duty; Excise Duty reduced on umbrellas and parts of footwear from 16 percent to 8 percent; Excise Duty on plywood reduced from 16 percent to 8 percent; and bio-diesel fully exempted from excise duty.
Shri Chidambaram has fully exempted from excise duty the water purification devices operating on specified membrane based technologies as well as domestic water filters not using electricity. He has also proposed to extend excise duty exemption to all pipes exceeding 200 mm in diameter used in water supply systems.