Budget 2007-08: Highlights

Other stories in the section:

Sonia hints at more concessions for farmers

Farmers who have not benefited from Budget loan waiver will be considered.

• Chidu pleased with himself over farmers loan waiver

Featured Blog

Yogesh Kumar

The 'Hall of Shame'

Featured Slideshows

Related Headlines

powered by

• Sonia hints at more concessions for farmers
• Chidu pleased with himself over farmers loan waiver

Keywords: Highlights , Union Budget

• An Expert Committee to be set up to study the impact of climate change in India.
• Rs 150 crore to be given to Ministry of Youth and Sports for Commonwealth Games and Rs 350 crore to the Delhi Government for the purpose. Rs 50 crore to be provided for the Commonwealth Youth Games in Pune.
• Rs 100 crore for recognising excellence in the field of agricultural research.
• VAT revenues increased by 24.3 per cent in the first nine months of 2006-07.
• A national level goods and services tax to be introduced from next fiscal.
• Fiscal deficit to be 3.7 per cent in the current year and revenue deficit 2 per cent.
• Fiscal management enabled states consolidate debt to the tune of Rs 1,10,268 crore and 20 states availed of debt waiver to the tune of Rs 8,575 crore.
• Increase in gross tax revenue by 19.9 per cent, 20 per cent and 27.8 per cent in first three years of UPA government. The Finance Minister said that he intended to keep tax rates moderate.
• Peak customs duty rate on non-agricultural items reduced from 12.5 to 10 per cent.

• All coking coal fully exempted from duty.
• Duties on seconds and defective reduced from 20 to 10 per cent.
• Customs duty on polyester to be reduced from 10 per cent to 7.5 per cent.
• Fiscal deficit for 2007-08 pegged at 3.3 per cent of GDP at Rs.1,50,948 crore. Revenue deficit at Rs.72,478 crore which will be 1.5 per cent. Total expenditure during 2006-07 estimated at Rs 6,80,521 crore including Rs 40,000 crore for SBI shares.
• Duty on lift irrigation, agricultural sprinklers and food processing equipment reduced from 7.5 per cent to 5 per cent.
• Duty on pet food reduced from 30 per cent to 20 per cent.
• Duty on sunflower oil to be reduced by 15 per cent.
• Duty reduced on watch dials and umbrella parts from 12.5 to 5 per cent.
• Import duty of 15 specified machinery to be reduced from 7.5 per cent to 5 per cent.
• Three per cent import duty to be levied on private importers of aircraft including helicopters.
• No change in general Central Value Added Tax (CENVAT) rate.
• Ad valorem duty on petrol and diesel to be brought down from 8 to 6 per cent.
• Export duty on iron ore and concentrate at the rate of Rs 300 per tonne. Export duty on Chromium proposed at Rs 2,000 tonne.
• Small scale industries excise duty exemption raised from Rs 1 crore to Rs 1.5 crore.
• Excise duty for plywood reduced from 16 per cent to 8 per cent.
• Food mixes to be fully exempted from excise duty.
• Bio-diesel to be fully exempted from excise duty.
• Water purification devices, small and big, fully exempted from excise.
• Specific rates of excise duty on cigarettes increased.
• Excise duty on pan masala without tobacco as mouth freshners reduced from 66 per cent to 45 per cent.
• Excise duty on cement reduced from Rs 400 per tonne to Rs 350 per tonne for cement bags sold at Rs 190 per bag at retail market. Those sold above Rs 190 will attract excise duty of Rs 600 per tonne.
• Two lakh people to benefit out of service tax exemption. Government to lose Rs 800 crore as a result.
• Income tax exemption increased: Upto Rs,110,000 for men, upto Rs145,000 for women and upto Rs 195,000 for seniorr citizens
• Deduction in respect of medical insurance under Section 80 (D) increased to Rs 15,000 and Rs 20,000 for senior citizens.
• Service tax on Residents Welfare Associations whose members contribute more than Rs 3,000.
• Surcharge on corporate income tax on companies below Rs 1 crore removed.
• Tax free bonds to be issued by state-owned urban local bodies.
• Five-year tax holiday for two, three, four star hotels and convention centres with a seating capacity of 3,000 in NCT of Delhi, Gurgaon, Ghaziabad, Faridabad and Gautam Buddha

  Nagar for Commonwealth Games. Twenty thousand more rooms required.

• Minimum Alternate Tax being extended.
• Benefits of investment in venture capital funds confined to IT, bio-technology, nano-technology, seed research, dairy among some others.
• Dividend distribution tax raised from 12.5 to 15 per cent.
• Expenditure on samples and free distribution items to be exempted from fringe benefit tax.
• Additional revenue from direct taxes to yield Rs 3,000 crore and indirect tax revenue neutral.
• Withdrawals by Central and state governments exempted from Banking Cash Transaction Tax. The limit for individuals and HUF raised from Rs 25,000 to Rs 50,000.

(With PTI inputs)