An ambitious Budget that needs proper execution
So, boosting the consumption - which would create more demand for the goods and services would result in a greater collection of revenue.
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People watch Finance Minister Nirmala Sitharaman presenting Union Budget 2021-21 on television sets at an electronics store. (Photo | V Karthikalagu, EPS)
In a situation where the economy was not doing well, even before the pandemic began, and with it getting further hit by the steps taken to contain the pandemic, it was indeed challenging for the Finance Minister to mobilise revenue from the indirect taxes, since public consumption had come down. Indirect taxes like Customs Duty, Goods and Services Tax and Excise Duty etc. are essentially taxes on consumption. So, boosting the consumption - which would create more demand for the goods and services would result in a greater collection of revenue.
Express News Service
NEW DELHI: The forthcoming budget is likely to reduce the number of import tax slabs and raise customs duty on a host of finished products and components ranging from batteries and electric vehicles to furniture, solar modules and smartphones. The move is part of the Centre’s bid to encourage local production.
“Our aim all along has been to slap the highest duties on finished products, slightly lower duties on components, and the lowest on raw materials. We believe that guiding principle will be followed this year more aggressively as we wish to encourage domestic production,” said Sumit Dutt Majumder, former Chairman, Central Board of Excise and Customs.