The Lok Sabha has approved the Interim Budget, including the Finance Bill 2009 by voice vote despite a walkout by the Opposition National Democratic Alliance and the Left parties.
Pranab Mukherjee, the acting Finance Minister said "The government is keen on restoring business confidence in the services sector. It is also our objective that the dispersal between CENVAT rate and the service tax rate is reduced with a view to moving towards the Uniform Goods and Service Tax."
The announced fiscal sops will be effective from midnight and will have revenue loss of Rs. 29,000 crore to the government. The fiscal sops would result in revenue loss of Rs. 14,000 crore in service tax, Rs 8,500 crore in excise duty and Rs 6,600 crore in customs duty. Mr. Mukherjee said that the full impact of the recession in other parts of the world, especially Europe and Asia, was yet to unfold. Due to the strong export linkages with these economies, it was likely that the Indian economy might feel further impact in the coming months. To counter any such effect, the United Progressive Alliance had taken these decision, he said adding that the Union Budget was just one of the instruments for addressing economic policy concerns and the government would take necessary measures as and when required, until the next regime took over.
He also said that the irregularities faced by suppliers to Special Economic Zones with regard to treatment of export profits will be addressed in the regular budget. As regards the States, Mr. Mukherjee said that as part of the stimulus package they had been allowed to borrow an additional 0.5% of the Gross State Domestic Product (GSDP). The exemption, he added, would continue in 2009-2010 with the possibility of further review.
Pranab Mukherjee, the acting Finance Minister said "The government is keen on restoring business confidence in the services sector. It is also our objective that the dispersal between CENVAT rate and the service tax rate is reduced with a view to moving towards the Uniform Goods and Service Tax."
The announced fiscal sops will be effective from midnight and will have revenue loss of Rs. 29,000 crore to the government. The fiscal sops would result in revenue loss of Rs. 14,000 crore in service tax, Rs 8,500 crore in excise duty and Rs 6,600 crore in customs duty. Mr. Mukherjee said that the full impact of the recession in other parts of the world, especially Europe and Asia, was yet to unfold. Due to the strong export linkages with these economies, it was likely that the Indian economy might feel further impact in the coming months. To counter any such effect, the United Progressive Alliance had taken these decision, he said adding that the Union Budget was just one of the instruments for addressing economic policy concerns and the government would take necessary measures as and when required, until the next regime took over.
He also said that the irregularities faced by suppliers to Special Economic Zones with regard to treatment of export profits will be addressed in the regular budget. As regards the States, Mr. Mukherjee said that as part of the stimulus package they had been allowed to borrow an additional 0.5% of the Gross State Domestic Product (GSDP). The exemption, he added, would continue in 2009-2010 with the possibility of further review.
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