NEW DELHI, July 17: The industry chambers have expressed their disappointment over the non-restoration of 100 per cent Modvat in the modified Finance Bill, which was announced by the finance minister in the Parliament on Friday. The Confederation of Indian Industry (CII) president Rajesh V Shah said the Bill has failed to fulfill the expectations of the corporate sector and address the issue of growth and restoration of confidence. He said that the key issue of restoration of 100 per cent Modvat has not been addressed. Shah questioned the logic and rationale of the singular exemption of restricting Modvat credit to 95 per cent to the polyester sector when the entire industry needed a reprieve from this retrograde step.Shah however, welcomed some of the sectoral measures in indirect taxes such as reduction of import duty on edible oil 10 per cent, reduction of duty on medical furniture from 13 to eight per cent, withdrawal of the excise duty on tyres for animal drawn vehicles, removal of excise duty oncertain branded products and reduction of excise duty on aluminium scrap.
On the direct tax front the CII president welcomed the restoration of exemption of non-ordinary resident status category. The Federation of Indian Chambers of Commerce and Industry (Ficci) is also ``deeply distressed'' over non-restoration of full Modvat credit by removing the 5 per cent restriction announced in the Budget.
The chamber has further felt that the levy of excise duty on packaged tea should have been withdrawn altogether.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
