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COPYRIGHT 2006 Asia Pulse Pty Ltd
Budget: No change in personal, corporate Income Taxes
New Delhi, Feb 28 (PTI) The General Budget for 2006-07 proposes no changes in personal and corporate Income Taxes, slashed customs and excise duties on a number of items including small cars and aerated soft drinks and brought 16 more items like ATM operations and luxury class air travel under the service tax net.
Presenting his third Budget in Lok Sabha today, Finance Minister P Chidambaram also abolished the one-by-six scheme for mandatory filing of tax returns and proposed across the board increase in the Securities Transaction Tax while announcing a roadmap for a Goods and Service Tax in four years.
He did not bow to the demand of the industry to withdraw the controversial Fringe Benefit Tax but modified it to remove some of the glitches in its implementation. Similarly, he ruled out withdrawal of Banking Cash Transaction Tax.
As usual, the Finance Minister did not resist the temptation to tax smokers when he raised excise duty on cigarettes by five per cent. While the proposals on direct tax are expected to yield Rs 40 bn, those on indirect taxes Rs 20 bn.
Pegging the Fiscal Deficit for 2006-07 at 3.8 per cent of GDP at Rs 1486.86 bn and Revenue Deficit at 2.1 per cent at Rs 847.27 bn, Chidambaram raised gross budgetary support for plan to Rs 1727.28...
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