Excise duty cut may lead to Rs 300-400 crore loses in next 40 days: FM

The Finance Minister, Shri P. Chidambaram said that the excise duty cut may lead to Rs 300-400 crore loses in next 40 days.

The FM while presenting the interim budget 2014-15 announced that the excise duty has been reduced from 12 per cent to 10 per cent for capital goods and consumer durables for the period upto 30 June 2014. The rates can be reviewed at the time of regular Budget. Excise duty cut for small cars is down to 8 per cent from 12 per cent. Excise duty on SUVs down by 6 per cent from 30 to 24 per cent. Excise duty on two-wheelers is also down to 8 per cent. Excise duty on medium cars down from 24 per cent to 20 per cent for the period upto 30 June 2014.

Further, to encourage domestic production of mobile handsets, the excise duties for all categories of mobile handsets is restructured. The rates will be 6 per cent with CENVAT credit or 1 per cent without CENVAT credit.

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