More Indian tax cuts
Excise duty, services taxes trimmed
The Indian government has announced a third round of tax cuts in a bid to
provide further stimulus to the economy.
The cuts are designed to boost trade, and include a 2 per cent cut in the
central excise duty to 8 per cent, with a similar cut applying to the excise on
cement. Service taxes will be cut to 10 per cent from 12 per cent.
The government expects the Indian economy to start feeling the full impact of
the slowdown in Europe later in the year, due to strong export links with EU
countries.
Finance minister Shri Pranab Mukhejee foreshadowed the move when he announced
the interim budget, telling parliament that the government had some flexibility
to cut excise taxes and duties.