Probiotics will also attract a reduced basic customs duty of 5 per cent from 10 per cent. 200 crore rupees have been set aside for research and scientific break through in achieving food security and agriculture development.
To promote clean environment, the budget proposes full exemption from countervailing duty for setting up solar thermal projects, Energy saving bulbs, compact fluorescent lamps to get full exemption from customs duty. Excise duty on LED to be slashed to 6 per cent, so also hybrid vehicles.
For containing the current accounts deficit the budget proposes to increase basic customs duty on standard gold bars from 2 per cent to 4 per cent and the non-standard gold from 5 to 10 per cent to check consumption. Cut and polished coloured gem stoned will attract 2 per cent duty. Branded silver jewellery to be fully exempted from excise duty and the duty on jewellery rationalized. The duty on package cements is also rationalized.
For additional resource mobilization, the basic excise duty on cigarettes for more than 65 mm length to be increased and also there will be nominal increase in the excise duty on hand rolled bidis from 8 rupees to 10 rupees per thousand and 19 rupees to 21 rupees per thousand for machine rolled bidis.
Pan masala, Gutka and other tobacco products will also attract higher duties. The cess on crude petroleum oil to go up to 4500 rupees per metric tonne an increase of 2000 rupees.
Completely built units of large cars and utility vehicles having engine capacity above the threshold with value of over 40 thousand US dollars will attract higher customs duty of 75 per cent instead of 60. Full exemption from 5 per cent countervailing duty proposed for ships and vessels. Baggage allowance for Indians traveling abroad raised to 35, 000 rupees from 25, 000 and for children it will be 15,000 rupees instead of 12,000. The basic customs duty is estimated to result at a net revenue gain of 27,280 crore rupees and there will be an outgo of 4,500 crore rupees in the direct taxes due to concessions proposed in the budget.
