India cuts excise, service taxes post-budget announcement

25 February 2009 04:04  [Source: ICIS news]

SINGAPORE (ICIS news)--India has reduced the excise duty on all manufacturing products to 8% from 10% and the service tax to 10% from 12% to boost production, the country's Ministry of Finance said late on Tuesday.

The tax cuts, which were announced days after the government revealed its interim budget, are expected to boost demand in the slowing domestic economy. India's GDP growth is expected to slow to 7% in the fiscal year ending March 2009 from 9.0% a year earlier.

Petrochemical industry players in India had earlier expressed disappointment over the non-inclusion of any tax cuts in the interim budget announced on 16 February, ahead of the general elections to be held in May.

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By: Prema Viswanathan
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