Finance Ministry Is In No Mood To Salsh Duties

The finance ministry is in no mood to salsh duties even as it rules out the possibility of a cess. Although the oil deficit predicted at Rs 2,30,000 crore for 2008-09 is threatening to derail the fiscal balance, the finance ministry is reluctant to slash duties given the huge spending ahead, be it the farm loan waiver or the NREG extension or the Sixth Pay Commission suggestions. Finance ministry sources say that at best, there is scope for decrease in Customs duty in the wake of rupee depreciation. The Customs duty for crude is 5%. A decrease in the duty could give relief to the refining companies. The finance ministry''s reluctance to decrease duties stems from the fact that the oil sector is among the biggest contributors to revenues.