FM extends excise duty cut on automobiles, consumer
durables & capital goods
26/06/2014 16:52
The Narendra Modi led BJP government delivered a much needed pre-budget boost to an ailing Indian economy as policymakers extended the cut on excise duties on automobiles, consumer durables and capital goods, lifting the outlook for Asia’s third biggest economy which has expanded below the 5 per cent mark for the past several quarters. Finance Minister Arun Jailtley announced that the excise duty cuts that were due to expire by the end of this month have been given a six-month extension up to December 31, 2014. The decision to extend the duty cuts are expected to boost demand and consumption, lifting the country’s economic growth outlook. The cut in excise duties on automobiles, consumer durables and capital goods were unveiled by the UPA government in the interim budget in February. Jaitley is confident that the loss of revenue on account of extension of duty cuts would be overshadowed by the positive impact of these cuts on demand and consumption in the Indian economy. “Short-term loss will benefit the economy in the long run. We expect industry to show positive results in the coming months... We also expect the benefit of these duty concessions will be passed on to consumers at large." Jaitley said, according to media reports.
26/06/2014 16:52
The Narendra Modi led BJP government delivered a much needed pre-budget boost to an ailing Indian economy as policymakers extended the cut on excise duties on automobiles, consumer durables and capital goods, lifting the outlook for Asia’s third biggest economy which has expanded below the 5 per cent mark for the past several quarters. Finance Minister Arun Jailtley announced that the excise duty cuts that were due to expire by the end of this month have been given a six-month extension up to December 31, 2014. The decision to extend the duty cuts are expected to boost demand and consumption, lifting the country’s economic growth outlook. The cut in excise duties on automobiles, consumer durables and capital goods were unveiled by the UPA government in the interim budget in February. Jaitley is confident that the loss of revenue on account of extension of duty cuts would be overshadowed by the positive impact of these cuts on demand and consumption in the Indian economy. “Short-term loss will benefit the economy in the long run. We expect industry to show positive results in the coming months... We also expect the benefit of these duty concessions will be passed on to consumers at large." Jaitley said, according to media reports.
