Budget 2023-2024
Speech of
Nirmala Sitharaman
Minister of
Finance
February 1, 2023
Hon’ble
Speaker,
I
present the Budget for 2023-24. This is the first Budget in Amrit Kaal.
Introduction
1.
This
Budget hopes to build on the foundation laid in the previous Budget, and
the blueprint drawn for India@100. We envision a prosperous and inclusive
India, in which the fruits of development reach all regions and citizens,
especially our youth, women, farmers, OBCs, Scheduled Castes and Scheduled
Tribes.
2.
In
the 75th year of our Independence, the world has recognised the
Indian economy as a ‘bright star’. Our current year’s economic growth is
estimated to be at 7 per cent. It is notable that this is the highest among all
the major economies. This is in spite of the massive slowdown globally caused by
Covid-19 and a war. The Indian economy is therefore on the right track,
and despite a time of challenges, heading towards a bright future.
3.
Today as Indians stands with their head held high, and
the world appreciates India’s achievements and successes, we are sure that
elders who had fought for India’s independence, will with joy, bless us our
endeavors going forward.
Resilience amidst multiple crises
4.
Our
focus on wide-ranging reforms and sound policies, implemented through Sabka
Prayas resulting in Jan Bhagidari and targeted support to those in
need, helped us perform well in trying times. India’s rising global profile is
because of several accomplishments: unique world class digital public
infrastructure, e.g., Aadhaar, Co-Win and UPI; Covid vaccination drive in
unparalleled scale and speed; proactive role in frontier areas such as
achieving the climate related goals, mission LiFE, and National Hydrogen
Mission.
5.
During
the Covid-19 pandemic, we ensured that no one goes to bed hungry, with a scheme
to supply free food grains to over 80 crore persons for 28 months. Continuing
our commitment to ensure food and nutritional security, we are implementing,
from 1st January 2023, a scheme to supply free food grain to all
Antyodaya and priority households for the next one year, under PM Garib Kalyan
Anna Yojana (PMGKAY). The entire expenditure of about ` 2 lakh crore will be borne by the
Central Government.
G20 Presidency: Steering the global
agenda through challenges
6.
In these times of
global challenges, the G20 Presidency gives us a unique opportunity to
strengthen India’s role in the world economic order. With the theme of ‘Vasudhaiva
Kutumbakam’, we are steering an ambitious, people-centric agenda to address
global challenges, and to facilitate
sustainable economic development.
Achievements since 2014: Leaving no one
behind
7.
The
government’s efforts since 2014 have ensured for all citizens a better quality
of living and a life of dignity. The per capita income has more than doubled to
` 1.97
lakh.
8.
In
these nine years, the Indian economy has increased in size from being 10th
to 5th largest in the world. We have significantly improved our
position as a well-governed and innovative country with a conducive environment
for business as reflected in several global indices. We have made significant
progress in many Sustainable Development Goals.
9.
The
economy has become a lot more formalised as reflected in the EPFO membership
more than doubling to 27 crore, and 7,400 crore digital payments of ` 126 lakh crore through UPI in 2022.
10.
The
efficient implementation of many schemes, with universalisation of targeted
benefits, has resulted in inclusive development. Some of the schemes are:
i.
11.7
crore household toilets under Swachh Bharat Mission,
ii.
9.6
crore LPG connections under Ujjawala,
iii.
220
crore Covid vaccination of 102 crore persons,
iv.
47.8
crore PM Jan Dhan bank accounts,
v.
Insurance
cover for 44.6 crore persons under PM Suraksha Bima and PM Jeevan Jyoti Yojana,
and
vi.
Cash
transfer of `
2.2 lakh crore to over 11.4 crore
farmers under PM Kisan Samman Nidhi.
Vision for Amrit Kaal – an
empowered and inclusive economy
11.
Our
vision for the Amrit Kaal includes technology-driven and knowledge-based
economy with strong public finances, and a robust financial sector. To achieve
this, Jan Bhagidari through Sabka Saath Sabka Prayas is
essential.
13.
To service these focus areas in our journey to
India@100, we believe that the following four opportunities can be
transformative during Amrit Kaal.
1)
Economic Empowerment of Women: Deendayal
Antyodaya Yojana National Rural Livelihood Mission has achieved remarkable
success by mobilizing rural women into 81 lakh Self Help Groups. We will enable
these groups to reach the next stage of economic empowerment through formation
of large producer enterprises or collectives with each having several thousand
members and managed professionally. They will be helped with supply of raw
materials and for better design, quality, branding and marketing of their
products. Through supporting policies, they will be enabled to scale up their
operations to serve the large consumer markets, as has been the case with
several start-ups growing into ‘Unicorns’.
2)
PM VIshwakarma KAushal Samman (PM VIKAS): For
centuries, traditional artisans and craftspeople, who work with their hands
using tools, have brought renown for India. They are generally referred to as
Vishwakarma. The art and handicraft created by them represents the true spirit
of Atmanirbhar Bharat. For the first time, a package of assistance for them has
been conceptualized. The new scheme will enable them to improve the quality,
scale and reach of their products, integrating them with the MSME value chain.
The components of the scheme will include not only financial support but also
access to advanced skill training, knowledge of modern digital techniques and
efficient green technologies, brand promotion, linkage with local and global
markets, digital payments, and social security. This will greatly benefit the
Scheduled Castes, Scheduled Tribes, OBCs, women and people belonging to the
weaker sections.
3)
Tourism: The country offers immense attraction
for domestic as well as foreign tourists. There is a large potential to be
tapped in tourism. The sector holds huge opportunities for jobs and
entrepreneurship for youth in particular.
Promotion of tourism will be taken up on mission mode, with active
participation of states, convergence of government programmes and
public-private partnerships.
4)
Green Growth: We are
implementing many programmes for green fuel, green energy, green farming, green
mobility, green buildings, and green equipment, and policies for efficient use
of energy across various economic sectors. These green growth efforts help in
reducing carbon intensity of the economy and provides for large-scale green job
opportunities.
Priorities of this Budget
14.
The
Budget adopts the following seven priorities. They complement each other and
act as the ‘Saptarishi’ guiding us through the Amrit Kaal.
1) Inclusive Development
2) Reaching the Last Mile
3)
Infrastructure
and Investment
4) Unleashing the Potential
5) Green Growth
6) Youth Power
7) Financial Sector
Priority 1:
Inclusive Development
15.
The Government’s philosophy of Sabka Saath Sabka
Vikas has facilitated inclusive development covering in specific, farmers,
women, youth, OBCs, Scheduled Castes, Scheduled Tribes, divyangjan and
economically weaker sections, and overall priority for the underprivileged (vanchiton ko variyata). There has also
been a sustained focus on Jammu & Kashmir, Ladakh and the North-East. This
Budget builds on those efforts.
Agriculture and Cooperation
Digital Public Infrastructure for
Agriculture
16.
Digital
public infrastructure for agriculture will be built as an open source, open
standard and inter operable public good. This will enable inclusive,
farmer-centric solutions through relevant information services for crop
planning and health, improved access to farm inputs, credit, and insurance,
help for crop estimation, market intelligence, and support for growth of
agri-tech industry and start-ups.
Agriculture
Accelerator Fund
17.
An
Agriculture Accelerator Fund will be set-up to encourage agri-startups by young
entrepreneurs in rural areas. The Fund will aim at bringing innovative and
affordable solutions for challenges faced by farmers. It will also bring in
modern technologies to transform agricultural practices, increase productivity
and profitability.
Enhancing
productivity of cotton crop
18.
To
enhance the productivity of extra-long staple cotton, we will adopt a
cluster-based and value chain approach through Public Private Partnerships
(PPP). This will mean collaboration between farmers, state and industry for
input supplies, extension services, and market linkages.
Atmanirbhar
Horticulture Clean Plant Program
19.
We
will launch an Atmanirbhar Clean Plant Program to boost availability of
disease-free, quality planting material for high value horticultural crops at
an outlay of ` 2,200
crore.
Global Hub for
Millets: ‘Shree Anna’
20.
“India
is at the forefront of popularizing Millets, whose consumption furthers
nutrition, food security and welfare of farmers,” said Hon’ble Prime Minister.
21.
We are the largest producer and second largest
exporter of ‘Shree Anna’ in the world. We grow several types of 'Shree
Anna' such as jowar, ragi, bajra, kuttu, ramdana, kangni, kutki, kodo,
cheena, and sama. These have a number of health benefits, and have been an
integral part of our food for centuries. I acknowledge with pride the huge
service done by small farmers in contributing to the health of fellow citizens
by growing these ‘Shree Anna’.
22.
Now
to make India a global hub for 'Shree Anna', the Indian
Institute of Millet Research, Hyderabad will be supported as the Centre
of Excellence for sharing best practices, research and technologies at the
international level.
Agriculture
Credit
23.
The agriculture credit target will be increased
to ` 20 lakh crore
with focus on animal husbandry, dairy and fisheries.
Fisheries
24.
We
will launch a new sub-scheme of PM Matsya Sampada Yojana with targeted
investment of `
6,000 crore to further enable
activities of fishermen, fish vendors, and micro & small enterprises,
improve value chain efficiencies, and expand the market.
Cooperation
25.
For
farmers, especially small and marginal farmers, and other marginalised
sections, the government is promoting cooperative-based economic development
model. A new Ministry of Cooperation was formed with a mandate to realise the
vision of ‘Sahakar Se Samriddhi’. To realise this vision, the government
has already initiated computerisation of 63,000 Primary Agricultural Credit
Societies (PACS) with an investment of `
2,516 crore. In consultation with all stakeholders and states, model bye-laws
for PACS were formulated enabling them to become multipurpose PACS. A national
cooperative database is being prepared for country-wide mapping of cooperative
societies.
26.
With
this backdrop, we will implement a plan to set up massive decentralised storage
capacity. This will help farmers store their produce and realize remunerative
prices through sale at appropriate times. The government will also facilitate
setting up of a large number of multipurpose cooperative societies, primary
fishery societies and dairy cooperative societies in uncovered panchayats and
villages in the next 5 years.
Health, Education and Skilling
Medical &
Nursing Colleges
27.
One
hundred and fifty-seven new nursing colleges will be established in co-location
with the existing 157 medical colleges established since 2014.
Sickle Cell
Anaemia Elimination Mission
28.
A
Mission to eliminate Sickle Cell Anaemia by 2047 will be launched. It will
entail awareness creation, universal screening of 7 crore people in the age
group of 0-40 years in affected tribal areas, and counselling through
collaborative efforts of central ministries and state governments.
Medical
Research
29.
Facilities in select ICMR Labs will be made available
for research by public and private medical college faculty and private sector
R&D teams for encouraging collaborative research and innovation.
Pharma
Innovation
30.
A new programme to promote research and innovation in
pharmaceuticals will be taken up through centers of excellence. We shall also
encourage industry to invest in research and development in specific priority
areas.
Multidisciplinary
courses for medical devices
31.
Dedicated multidisciplinary courses for medical
devices will be supported in existing institutions to ensure availability of
skilled manpower for futuristic medical technologies, high-end manufacturing
and research.
Teachers’ Training
32.
Teachers’
training will be re-envisioned through innovative pedagogy, curriculum
transaction, continuous professional development, dipstick surveys, and ICT
implementation. The District Institutes of Education and Training will be
developed as vibrant institutes of excellence for this purpose.
National
Digital Library for Children and Adolescents
33.
A
National Digital Library for children and adolescents will be set-up for facilitating
availability of quality books across geographies, languages, genres and levels,
and device agnostic accessibility. States will be encouraged to set up physical
libraries for them at panchayat and ward levels and provide infrastructure for
accessing the National Digital Library resources.
34.
Additionally,
to build a culture of reading, and to make up for pandemic-time learning loss,
the National Book Trust, Children’s Book Trust and other sources will be encouraged
to provide and replenish non-curricular titles in regional languages and
English to these physical libraries. Collaboration with NGOs that work in
literacy will also be a part of this initiative. To inculcate financial
literacy, financial sector regulators and organizations will be encouraged to
provide age-appropriate reading material to these libraries.
Priority 2:
Reaching the Last Mile
35.
Prime
Minister Vajpayee’s government had formed the Ministry of Tribal Affairs and
the Department of Development of North-Eastern Region. To provide a sharper
focus to the objective of ‘reaching the last mile’, our government has formed
the ministries of AYUSH, Fisheries, Animal Husbandry and Dairying, Skill
Development, Jal Shakti and Cooperation.
Aspirational Districts and Blocks
Programme
36.
Building
on the success of the Aspirational Districts Programme, the Government has
recently launched the Aspirational Blocks Programme covering 500 blocks for
saturation of essential government services across multiple domains such as
health, nutrition, education, agriculture, water resources, financial
inclusion, skill development, and basic infrastructure.
Pradhan Mantri
PVTG Development Mission
37.
To improve socio-economic conditions of the
particularly vulnerable tribal groups (PVTGs), Pradhan Mantri PVTG Development
Mission will be launched. This will saturate PVTG families and habitations with
basic facilities such as safe housing, clean drinking water and sanitation,
improved access to education, health and nutrition, road and telecom
connectivity, and sustainable livelihood opportunities. An amount
of ` 15,000 crore
will be made available to implement the Mission in the next three years under
the Development Action Plan for the Scheduled Tribes.
Eklavya Model Residential Schools
38.
In
the next three years, centre will recruit 38,800 teachers and support staff for
the 740 Eklavya Model Residential Schools, serving 3.5 lakh tribal students.
Water for Drought Prone Region
39.
In
the drought prone central region of Karnataka, central assistance of ` 5,300 crore will be given to Upper
Bhadra Project to provide sustainable micro irrigation and filling up of
surface tanks for drinking water.
PM Awas Yojana
40.
The outlay for PM Awas Yojana is being enhanced
by 66 per cent to over ` 79,000 crore.
Bharat Shared Repository of Inscriptions (Bharat SHRI)
41.
‘Bharat
Shared Repository of Inscriptions’ will be set up in a digital epigraphy
museum, with digitization of one lakh ancient inscriptions in the first
stage.
Support for
poor prisoners
42.
For poor persons who are in prisons and unable to
afford the penalty or the bail amount, required financial support will be
provided.
Priority 3: Infrastructure &
Investment
43.
Investments
in Infrastructure and productive capacity have a large multiplier impact on
growth and employment. After the subdued period of the pandemic, private
investments are growing again. The Budget takes the lead once again to ramp up
the virtuous cycle of investment and job creation.
Capital Investment as driver of growth
and jobs
44.
Capital
investment outlay is being increased steeply for the third year in a row by 33
per cent to ` 10
lakh crore, which would be 3.3 per cent of GDP. This will be almost three times
the outlay in 2019-20.
45.
This
substantial increase in recent years is central to the government’s efforts to
enhance growth potential and job creation, crowd-in private investments, and
provide a cushion against global headwinds.
Effective Capital Expenditure
46.
The
direct capital investment by the Centre is complemented by the provision made
for creation of capital assets through Grants-in-Aid to States. The ‘Effective
Capital Expenditure’ of the Centre is budgeted at
` 13.7
lakh crore, which will be 4.5 per cent of GDP.
Support to State Governments for
Capital Investment
47.
I
have decided to continue the 50-year interest free loan to state governments
for one more year to spur investment in infrastructure and to incentivize them
for complementary policy actions, with a significantly enhanced outlay of ` 1.3 lakh crore.
Enhancing opportunities for private
investment in Infrastructure
48.
The
newly established Infrastructure Finance Secretariat will assist all
stakeholders for more private investment in infrastructure, including railways,
roads, urban infrastructure and power, which are predominantly dependent on
public resources.
Harmonized Master List of
Infrastructure
49.
The
Harmonized Master List of Infrastructure will be reviewed by an expert
committee for recommending the classification and financing framework suitable
for Amrit Kaal.
Railways
50.
A
capital outlay of ` 2.40
lakh crore has been provided for the Railways. This highest ever outlay is
about 9 times the outlay made in 2013-14.
Logistics
51.
One
hundred critical transport infrastructure projects, for last and first mile
connectivity for ports, coal, steel, fertilizer, and food grains sectors have
been identified. They will be taken up on priority with investment of
` 75,000
crore, including `
15,000 crore from private sources.
Regional Connectivity
52.
Fifty
additional airports, heliports, water aerodromes and advance landing grounds
will be revived for improving regional air connectivity.
Sustainable Cities of Tomorrow
53.
States
and cities will be encouraged to undertake urban planning reforms and actions
to transform our cities into ‘sustainable cities of tomorrow’. This means
efficient use of land resources, adequate resources for urban infrastructure,
transit-oriented development, enhanced availability and affordability of urban
land, and opportunities for all.
Making Cities ready for Municipal Bonds
54.
Through
property tax governance reforms and ring-fencing user charges on urban
infrastructure, cities will be incentivized to improve their credit worthiness
for municipal bonds.
Urban
Infrastructure Development Fund
55.
Like the RIDF, an Urban Infrastructure Development
Fund (UIDF) will be established through use of priority sector lending
shortfall. This will be managed by the National Housing Bank, and will be used
by public agencies to create urban infrastructure in Tier 2 and Tier 3 cities.
States will be encouraged to leverage resources from the grants of the 15th
Finance Commission, as well as existing schemes, to adopt appropriate user
charges while accessing the UIDF. We expect to make
available ` 10,000 crore per annum for this purpose.
Urban
Sanitation
56.
All cities and towns will be enabled for 100 per cent
mechanical desludging of septic tanks and sewers to transition from manhole to
machine-hole mode. Enhanced focus will be provided for scientific management of
dry and wet waste.
Priority
4: Unleashing the Potential
57.
“Good
Governance is the key to a nation’s progress. Our government is committed to
providing a transparent and accountable administration which works for the
betterment and welfare of the common citizen,” said Hon’ble Prime Minister.
Mission Karmayogi
58.
Under
Mission Karmayogi, Centre, States and Union Territories are making and
implementing capacity-building plans for civil
servants. The government has also launched an integrated online training
platform, iGOT Karmayogi, to provide continuous learning opportunities
for lakhs of government employees to upgrade their skills and facilitate
people-centric approach.
59.
For
enhancing ease of doing business, more than
39,000 compliances have been reduced and more than
3,400 legal provisions have been decriminalized. For furthering the trust-based
governance, we have introduced the Jan Vishwas Bill to amend 42 Central Acts.
This Budget proposes a series of measures to unleash the potential of our
economy.
Centres of
Excellence for Artificial Intelligence
60.
For
realizing the vision of “Make AI in India and Make AI work for India”,
three centres of excellence for Artificial Intelligence will be set-up in top
educational institutions. Leading industry players will partner in conducting
interdisciplinary research, develop cutting-edge applications and scalable
problem solutions in the areas of agriculture, health, and sustainable cities.
This will galvanize an effective AI ecosystem and nurture quality human
resources in the field.
National Data
Governance Policy
61.
To unleash innovation and research by start-ups and
academia, a National Data Governance Policy will be brought out. This will
enable access to anonymized data.
Simplification
of Know Your Customer (KYC) process
62.
The KYC process will be simplified adopting a
‘risk-based’ instead of ‘one size fits all’ approach. The financial sector
regulators will also be encouraged to have a KYC system fully amenable to meet
the needs of Digital India.
One stop
solution for identity and address updating
63.
A one stop solution for reconciliation and updating of
identity and address of individuals maintained by various government agencies,
regulators and regulated entities will be established using DigiLocker service
and Aadhaar as foundational identity.
Common Business
Identifier
64.
For the business establishments required to have a
Permanent Account Number (PAN), the PAN will be used as the common identifier
for all digital systems of specified government agencies. This will bring ease
of doing business; and it will be facilitated through a legal mandate.
Unified Filing Process
65.
For obviating the need for separate submission of same
information to different government agencies, a system of ‘Unified Filing
Process’ will be set-up. Such filing of information or return in simplified
forms on a common portal, will be shared with other agencies as per filer’s
choice.
Vivad se
Vishwas I – Relief for MSMEs
66.
In cases of failure by MSMEs to execute contracts
during the Covid period, 95 per cent of the forfeited amount relating to bid or
performance security, will be returned to them by government and government
undertakings. This will provide relief
to MSMEs.
Vivad se
Vishwas II – Settling Contractual Disputes
67.
To settle contractual disputes of government and
government undertakings, wherein arbitral award is under challenge in a court,
a voluntary settlement scheme with standardized terms will be introduced. This
will be done by offering graded settlement terms depending on pendency level of
the dispute.
State Support Mission
68.
The State Support Mission of NITI Aayog will be
continued for three years for our collective efforts towards national
priorities.
Result Based
Financing
69.
To better allocate scarce resources for competing
development needs, the financing of select schemes will be changed, on a pilot
basis, from ‘input-based’ to ‘result-based’.
E-Courts
70.
For efficient administration of justice, Phase-3 of
the
E-Courts project will be launched with
an outlay
of ` 7,000 crore.
Fintech
Services
71.
Fintech services in India have been facilitated by our
digital public infrastructure including Aadhaar, PM Jan Dhan Yojana, Video KYC,
India Stack and UPI. To enable more
Fintech innovative services, the scope of documents available in DigiLocker for
individuals will be expanded.
Entity
DigiLocker
72.
An Entity DigiLocker will be set up for use by MSMEs,
large business and charitable trusts. This will be towards storing and sharing
documents online securely, whenever needed, with various authorities,
regulators, banks and other business entities.
5G Services
73.
One hundred labs for developing applications using
5G services will be set up in engineering institutions to realise a new range
of opportunities, business models, and employment potential. The labs will cover, among others, applications
such as smart classrooms, precision farming, intelligent transport
systems, and health care applications.
Lab Grown
Diamonds
74.
Lab Grown Diamonds (LGD) is a technology-and
innovation-driven emerging sector with high employment potential. These
environment-friendly diamonds which have optically and chemically the same
properties as natural diamonds. To encourage indigenous production of LGD seeds
and machines and to reduce import dependency, a research and development grant
will be provided to one of the IITs for five years.
75.
To reduce the cost of production, a proposal to review
the custom duty rate on LGD seeds will be indicated in Part B of the
speech.
Priority 5: Green Growth
76.
Hon’ble Prime Minister has given a vision for “LiFE”,
or Lifestyle for Environment, to spur a movement of environmentally conscious
lifestyle. India is moving forward firmly for the ‘panchamrit’ and net-zero
carbon emission by 2070 to usher in green industrial and economic transition.
This Budget builds on our focus on green growth.
Green Hydrogen Mission
77.
The recently launched National Green Hydrogen Mission,
with an outlay of ` 19,700 crores, will facilitate transition of the
economy to low carbon intensity, reduce dependence on fossil fuel imports, and
make the country assume technology and market leadership in this sunrise
sector. Our target is to reach an annual production of 5 MMT by 2030.
Energy
Transition
78.
This Budget provides ` 35,000 crore for priority capital investments towards
energy transition and net zero objectives, and energy security by Ministry of
Petroleum & Natural Gas.
Energy Storage Projects
79.
To
steer the economy on the sustainable development path, Battery Energy Storage
Systems with capacity of 4,000 MWH will be supported with Viability Gap
Funding. A detailed framework for Pumped Storage Projects will also be
formulated.
Renewable Energy Evacuation
80.
The
Inter-state transmission system for evacuation and grid integration of 13 GW
renewable energy from Ladakh will be constructed with investment of ` 20,700 crore including central support
of ` 8,300 crore.
Green Credit Programme
81.
For
encouraging behavioural change, a Green Credit Programme will be notified under
the Environment (Protection) Act. This will incentivize environmentally
sustainable and responsive actions by companies, individuals and local bodies,
and help mobilize additional resources for such activities.
PM-PRANAM
82.
“PM
Programme for Restoration, Awareness, Nourishment and Amelioration of Mother
Earth” will be launched to incentivize States and Union Territories to promote
alternative fertilizers and balanced use of chemical fertilizers.
GOBARdhan scheme
83.
500
new ‘waste to wealth’ plants under GOBARdhan (Galvanizing Organic Bio-Agro
Resources Dhan) scheme will be established for promoting circular economy.
These will include 200 compressed biogas (CBG) plants, including 75 plants in
urban areas, and 300 community or cluster-based plants at total investment of ` 10,000 crore.
I will refer to this in Part B. In due course, a 5 per cent CBG mandate will be introduced for all
organizations marketing natural and bio gas. For collection of bio-mass and distribution of bio-manure,
appropriate fiscal support will be provided.
Bhartiya Prakritik Kheti Bio-Input Resource Centres
84.
Over the next
3 years, we will facilitate 1 crore farmers to adopt natural farming. For this,
10,000 Bio-Input Resource Centres will be set-up, creating a national-level
distributed micro-fertilizer and pesticide manufacturing network.
MISHTI
85.
Building on India’s success in afforestation,
‘Mangrove Initiative for Shoreline Habitats & Tangible Incomes’, MISHTI,
will be taken up for mangrove plantation along the coastline and on salt pan
lands, wherever feasible, through convergence between MGNREGS, CAMPA Fund and
other sources.
Amrit Dharohar
86.
Wetlands are vital ecosystems which sustain biological
diversity. In his latest Mann Ki Baat, the Prime Minister said, “Now the
total number of Ramsar sites in our country has increased to 75. Whereas, before
2014, there were only 26…” Local communities have always been at the
forefront of conservation efforts. The government will promote their unique
conservation values through Amrit Dharohar, a scheme that will be
implemented over the next three years to encourage optimal use of wetlands, and
enhance bio-diversity, carbon stock,
eco-tourism opportunities and income generation for local communities.
Coastal Shipping
87.
Coastal
shipping will be promoted as the energy efficient and lower
cost mode of transport, both for passengers and freight, through PPP mode with
viability gap funding.
Vehicle
Replacement
88.
Replacing
old polluting vehicles is an important part of greening our economy. In
furtherance of the vehicle scrapping policy mentioned in Budget 2021-22, I have
allocated adequate funds to scrap old vehicles of the Central Government.
States will also be supported in replacing old vehicles and ambulances.
Priority 6: Youth Power
89.
To empower our youth and help the ‘Amrit Peedhi’
realize their dreams, we have formulated the National Education Policy, focused
on skilling, adopted economic policies that facilitate job creation at scale,
and have supported business opportunities.
Pradhan Mantri
Kaushal Vikas Yojana 4.0
90.
Pradhan Mantri Kaushal Vikas Yojana 4.0 will be
launched to skill lakhs of youth within the next three years. On-job training, industry partnership, and
alignment of courses with needs of industry will be emphasized. The scheme will
also cover new age courses for Industry 4.0 like coding, AI, robotics,
mechatronics, IOT, 3D printing, drones, and soft skills. To skill youth for
international opportunities, 30 Skill India International Centres will be set
up across different States.
Skill India
Digital Platform
91.
The digital ecosystem for skilling will be further
expanded with the launch of a unified Skill India Digital platform for:
·
enabling demand-based formal skilling,
·
linking with employers including MSMEs, and
·
facilitating access to entrepreneurship schemes.
National
Apprenticeship Promotion Scheme
92.
To provide stipend support to 47 lakh youth in three
years, Direct Benefit Transfer under a pan-India National Apprenticeship
Promotion Scheme will be rolled out.
Tourism
93.
With an integrated and innovative approach, at
least 50 destinations will be selected through challenge mode. In addition to
aspects such as physical connectivity, virtual connectivity, tourist guides,
high standards for food streets and tourists’ security, all the relevant
aspects would be made available on an App to enhance tourist experience. Every
destination would be developed as a complete package. The focus of development
of tourism would be on domestic as well as foreign tourists.
94.
Sector specific skilling and entrepreneurship development will be
dovetailed to achieve the objectives of the ‘Dekho Apna Desh’ initiative. This
was launched as an appeal by the Prime Minister to the middle class to prefer
domestic tourism over international tourism. For integrated development of
theme-based tourist circuits, the ‘Swadesh Darshan Scheme’ was also launched.
Under the Vibrant Villages Programme, tourism infrastructure and amenities will
also be facilitated in border villages.
Unity Mall
95.
States
will be encouraged to set up a Unity Mall in their state capital or most
prominent tourism centre or the financial capital for promotion and sale of
their own ODOPs (one district, one product), GI products and other handicraft
products, and for providing space for such products of all other States.
Priority 7: Financial Sector
96.
Our
reforms in the financial sector and innovative use of technology have led to
financial inclusion at scale, better and faster service delivery, ease of
access to credit and participation in financial markets. This Budget proposes
to further these measures.
Credit Guarantee for MSMEs
97.
Last
year, I proposed revamping of the credit guarantee scheme for MSMEs. I am happy
to announce that the revamped scheme will take effect from 1st April
2023 through infusion of `
9,000 crore in the corpus. This will
enable additional collateral-free guaranteed credit of ` 2
lakh crore. Further, the cost of the credit will be reduced by about 1 per
cent.
National
Financial Information Registry
98.
A national financial information registry will be set
up to serve as the central repository of financial and ancillary information.
This will facilitate efficient flow of credit, promote financial inclusion, and
foster financial stability. A new legislative framework will govern this credit
public infrastructure, and it will be designed in consultation with the RBI.
Financial
Sector Regulations
99.
To meet the needs of Amrit Kaal and to
facilitate optimum regulation in the financial sector, public consultation, as
necessary and feasible, will be brought to the process of regulation-making and
issuing subsidiary directions.
100.
To simplify, ease and reduce cost of compliance,
financial sector regulators will be requested to carry out a comprehensive
review of existing regulations. For this, they will consider suggestions from
public and regulated entities. Time limits to decide the applications under
various regulations will also be laid down.
GIFT IFSC
101.
To enhance business activities in GIFT IFSC, the
following measures will be taken:
·
Delegating powers under the SEZ Act to IFSCA to avoid
dual regulation,
·
Setting up a single window IT system for registration
and approval from IFSCA, SEZ authorities, GSTN, RBI, SEBI and IRDAI,
·
Permitting acquisition financing by IFSC Banking Units
of foreign banks,
·
Establishing a subsidiary of EXIM Bank for trade
re-financing,
·
Amending IFSCA Act for statutory provisions for
arbitration, ancillary services, and avoiding dual regulation under SEZ Act,
and
·
Recognizing offshore derivative instruments as valid
contracts.
Data
Embassy
102.
For countries looking for digital continuity
solutions, we will facilitate setting up of their Data Embassies in GIFT IFSC.
Improving
Governance and Investor Protection in Banking Sector
103.
To improve bank governance and enhance investors’
protection, certain amendments to the Banking Regulation Act, the Banking
Companies Act and the Reserve Bank of India Act are proposed.
Capacity
Building in Securities Market
104.
To build capacity of functionaries and professionals
in the securities market, SEBI will be empowered to develop, regulate, maintain
and enforce norms and standards for education in the National Institute of
Securities Markets and to recognize award of degrees, diplomas and
certificates.
Central Data
Processing Centre
105.
A Central Processing Centre will be setup for faster
response to companies through centralized handling of various forms filed with
field offices under the Companies Act.
Reclaiming of
shares and dividends
106.
For investors to reclaim unclaimed shares and unpaid
dividends from the Investor Education and Protection Fund Authority with ease,
an integrated IT portal will be established.
Digital Payments
107.
Digital payments continue to find wide acceptance. In
2022, they show increase of 76 per cent in transactions
and 91 per cent in value. Fiscal support for this digital public infrastructure
will continue in 2023-24.
Azadi Ka Amrit Mahotsav Mahila
Samman Bachat Patra
108.
For commemorating Azadi Ka Amrit Mahotsav, a one-time
new small savings scheme, Mahila Samman Savings Certificate, will be made
available for a two-year period up to March 2025. This will offer deposit
facility upto ` 2 lakh in the
name of women or girls for a tenor of 2 years at fixed interest rate of 7.5 per
cent with partial withdrawal option.
Senior Citizens
109.
The maximum deposit limit for Senior
Citizen Savings Scheme will be enhanced from ` 15 lakh to ` 30 lakh.
110.
The maximum
deposit limit for Monthly Income Account Scheme will be enhanced from ` 4.5 lakh to ` 9 lakh for
single account and from ` 9 lakh to ` 15 lakh for joint account.
Fiscal Management
Fifty-year interest free loan to States
111.
The
entire fifty-year loan to states has to be spent on capital expenditure within
2023-24. Most of this will be at the discretion of states, but a part will be
conditional on states increasing their actual capital expenditure. Parts of the
outlay will also be linked to, or allocated for, the following purposes:
· Scrapping old government vehicles,
· Urban planning reforms and actions,
· Financing reforms in urban local bodies
to make them creditworthy for municipal bonds,
· Housing for police personnel above or
as part of police stations,
· Constructing Unity Malls,
· Children and adolescents’ libraries and
digital infrastructure, and
· State share of capital expenditure of
central schemes.
Fiscal Deficit of States
112.
States
will be allowed a fiscal deficit of 3.5 per cent of GSDP of which 0.5 per cent
will be tied to power sector reforms.
Revised Estimates 2022-23
113.
The
Revised Estimate of the total receipts other than borrowings is
` 24.3
lakh crore, of which the net tax receipts
are ` 20.9
lakh crore. The Revised Estimate of the total expenditure is
` 41.9
lakh crore, of which the capital expenditure is about ` 7.3
lakh crore.
114.
The
Revised Estimate of the fiscal deficit is 6.4 per cent of GDP, adhering to the
Budget Estimate.
Budget Estimates 2023-24
115.
Coming
to 2023-24, the total receipts other than borrowings and the total expenditure
are estimated at ` 27.2 lakh crore and ` 45
lakh crore respectively. The net tax receipts are estimated at ` 23.3
lakh crore.
116.
The
fiscal deficit is estimated to be 5.9 per cent of GDP. In my Budget Speech for
2021-22, I had announced that we plan to continue the path of fiscal
consolidation, reaching a fiscal deficit below 4.5 per cent by 2025-26 with a
fairly steady decline over the period. We have adhered to this path, and I
reiterate my intention to bring the fiscal deficit below 4.5 per cent of GDP by
2025-26.
117.
To finance the fiscal deficit in 2023-24, the
net market borrowings from dated securities are estimated at ` 11.8 lakh
crore. The balance financing is expected to come from small savings and other
sources. The gross market borrowings are estimated at ` 15.4
lakh crore.
I will, now, move to Part B.
PART B
Indirect Taxes
118.
My
indirect tax proposals aim to promote exports, boost domestic manufacturing,
enhance domestic value addition, encourage green energy and mobility.
119.
A
simplified tax structure with fewer tax rates helps in reducing compliance
burden and improving tax administration. I propose to reduce the number of
basic customs duty rates on goods, other than textiles and agriculture, from 21
to 13. As a result, there are minor changes in the basic custom duties, cesses
and surcharges on some items including toys, bicycles, automobiles and naphtha.
Green Mobility
120.
To
avoid cascading of taxes on blended compressed natural gas, I propose to exempt
excise duty on GST-paid compressed bio gas contained in it. To further provide
impetus to green mobility, customs duty exemption is being extended to import
of capital goods and machinery required for manufacture of lithium-ion cells
for batteries used in electric vehicles.
Electronics
121.
As
a result of various initiatives of the Government, including the Phased
Manufacturing programme, mobile phone production in India has increased from
5.8 crore units valued at about ` 18,900 crore in 2014-15 to 31 crore
units valued at over ` 2,75,000 crore in the last financial
year. To further deepen domestic value addition in manufacture of mobile
phones, I propose to provide relief in customs duty on import of certain parts
and inputs like camera lens and continue the concessional duty on lithium-ion
cells for batteries for another year.
122.
Similarly,
to promote value addition in manufacture of televisions, I propose to reduce
the basic customs duty on parts of open cells of TV panels to 2.5 per cent.
Electrical
123.
To
rectify inversion of duty structure and encourage manufacturing of electric
kitchen chimneys, the basic customs duty on electric kitchen chimney is being increased
from 7.5 per cent to 15 per cent and that on heat coils for these is proposed
to be reduced from 20 per cent to 15 per cent.
Chemicals and
Petrochemicals
124.
Denatured
ethyl alcohol is used in chemical industry.
I propose to exempt basic customs duty
on it. This will also support the Ethanol Blending Programme and facilitate our
endeavour for energy transition. Basic customs duty is also being reduced on
acid grade fluorspar from 5 per cent to 2.5 per cent to make the domestic
fluorochemicals industry competitive. Further, the basic customs duty on crude
glycerin for use in manufacture of epicholorhydrin is proposed to be reduced
from 7.5 per cent to 2.5 per cent.
Marine products
125.
In
the last financial year, marine products recorded the highest export growth
benefitting farmers in the coastal states of the country. To further enhance
the export competitiveness of marine products, particularly shrimps, duty is
being reduced on key inputs for domestic manufacture of shrimp feed.
Lab Grown Diamonds
126.
India
is a global leader in cutting and polishing of natural diamonds, contributing
about three-fourths of the global turnover by value. With the depletion in
deposits of natural diamonds, the industry is moving towards Lab Grown Diamonds
(LGDs) and it holds huge promise. To seize this opportunity, I propose to
reduce basic customs duty on seeds used in their manufacture.
Precious Metals
127.
Customs
Duties on dore and bars of gold and platinum were increased earlier this
fiscal. I now propose to increase the duties on articles made therefrom to
enhance the duty differential. I also propose to increase the import duty on
silver dore, bars and articles to align them with that on gold and platinum.
Metals
128.
To
facilitate availability of raw materials for the steel sector, exemption from
Basic Customs Duty on raw materials for manufacture of CRGO Steel, ferrous
scrap and nickel cathode is being continued.
129.
Similarly,
the concessional BCD of 2.5 per cent on copper scrap is also being continued to
ensure the availability of raw materials for secondary copper producers who are
mainly in the MSME sector.
Compounded Rubber
130.
The
basic customs duty rate on compounded rubber is being increased from 10 per
cent to ‘25 per cent or ` 30/kg whichever is lower’, at par with
that on natural rubber other than latex, to curb circumvention of duty.
Cigarettes
131.
National
Calamity Contingent Duty (NCCD) on specified cigarettes was last revised three
years ago. This is proposed to be revised upwards by about 16 per cent.
Direct Taxes
132.
I
now come to my direct tax proposals. These proposals aim to maintain continuity
and stability of taxation, further simplify and rationalise various provisions
to reduce the compliance burden, promote the entrepreneurial spirit and provide
tax relief to citizens.
133.
It
has been the constant endeavour of the Income Tax Department to improve Tax
Payers Services by making compliance easy and smooth. Our tax payers’ portal
received a maximum of 72 lakh returns in a day; processed more than 6.5 crore
returns this year; average processing period reduced from 93 days in financial
year 13-14 to 16 days now;
and 45 per cent of the returns were processed within 24 hours. We intend to
further improve this, roll out a next-generation Common IT Return Form for tax
payer convenience, and also plan to strengthen the grievance redressal
mechanism.
MSMEs and Professionals
134.
MSMEs
are growth engines of our economy. Micro
enterprises with turnover up to ` 2 crore and certain professionals with
turnover of up to
` 50 lakh can avail the benefit of
presumptive taxation. I propose to provide enhanced limits of ` 3 crore and ` 75
lakh respectively, to the tax payers whose cash receipts are no more than 5 per
cent. Moreover, to support MSMEs in timely receipt of payments, I propose to
allow deduction for expenditure incurred on payments made to them only when
payment is actually made.
Cooperation
135.
Cooperation
is a value to be cherished. In realizing our Prime Minister’s goal of “Sahkar
se Samriddhi”, and
his resolve to “connect the spirit of cooperation with the spirit of Amrit
Kaal”, in addition to the measures proposed in Part A, I have a slew of
proposals for the co-operative sector.
136.
First,
new co-operatives that commence manufacturing activities till 31.3.2024 shall
get the benefit of a lower tax rate of 15 per cent, as is presently available
to new manufacturing companies.
137.
Secondly,
I propose to provide an opportunity to sugar co-operatives to claim payments made
to sugarcane farmers for the period prior to assessment year 2016-17 as
expenditure. This is expected to provide them with a relief of almost ` 10,000
crore.
138.
Thirdly,
I am providing a higher limit of ` 2 lakh per member for cash deposits to
and loans in cash by Primary Agricultural Co-operative Societies (PACS) and
Primary Co-operative Agriculture and Rural Development Banks (PCARDBs).
139.
Similarly,
a higher limit of ` 3 crore for TDS on cash withdrawal is
being provided to co-operative societies.
Start-Ups
140.
Entrepreneurship
is vital for a country’s economic development. We have taken a number of
measures for start-ups and they have borne results. India is now the third
largest ecosystem for start-ups globally, and ranks second in
innovation quality among middle-income countries. I propose to extend the date
of incorporation for income tax benefits to start-ups from 31.03.23 to 31.3.24.
I further propose to provide the benefit of carry forward of losses on change
of shareholding of start-ups from seven years of incorporation to ten years.
Appeals
141.
To
reduce the pendency of appeals at Commissioner level, I propose to deploy about
100 Joint Commissioners for disposal of small appeals. We shall also be more
selective in taking up cases for scrutiny of returns already received this
year.
Better targeting of tax concessions
142.
For
better targeting of tax concessions and exemptions,
I propose to cap deduction from capital
gains on investment in residential house under sections 54 and 54F to ` 10 crore. Another proposal with similar
intent is to limit income tax exemption from proceeds of insurance policies
with very high value.
Rationalisation
143.
There
are a number of proposals relating to rationalisation and simplification.
Income of authorities, boards and commissions set up by statutes of the Union
or State for the purpose of housing, development of cities, towns and villages,
and regulating, or regulating and developing an activity or matter, is proposed
to be exempted from income tax. Other major measures in this direction are:
· Removing the minimum threshold of ` 10,000/- for TDS and clarifying taxability
relating to online gaming;
· Not treating conversion of gold into
electronic gold receipt and vice versa as capital gain;
· Reducing the TDS rate from 30 per cent to 20
per cent on taxable portion of EPF withdrawal in non-PAN cases; and
· Taxation on income from Market Linked
Debentures.
Others
144.
Other
major proposals in the Finance Bill relate to the following:
· Extension of period of tax benefits to funds relocating to IFSC,
GIFT City till 31.03.2025;
· Decriminalisation under section 276A of the Income Tax Act;
· Allowing carry forward of losses on strategic disinvestment
including that of IDBI Bank; and
· Providing EEE status to Agniveer Fund.
Personal Income Tax
145.
Now,
I come to what everyone is waiting for -- personal income tax. I have five
major announcements to make in this regard. These primarily benefit our
hard-working middle class.
146.
The
first one concerns rebate. Currently, those with income up to
` 5 lakh do not pay any income tax in
both old and new tax regimes. I propose to increase the rebate limit to ` 7
lakh in the new tax regime. Thus, persons in the new tax regime, with income up
to ` 7
lakh will not have to pay any tax.
147.
The
second proposal relates to middle-class individuals.
I had introduced, in the year 2020, the
new personal income tax regime with six income slabs starting from ` 2.5
lakh. I propose to change the tax structure in this regime by reducing the
number of slabs to five and increasing the tax exemption limit to ` 3 lakh. The new tax rates are:
|
` 0-3 lakh |
Nil |
|
` 3-6 lakh |
5 per cent |
|
` 6-9 lakh |
10 per cent |
|
` 9-12 lakh |
15 per cent |
|
` 12-15 lakh |
20 per cent |
|
Above ` 15 lakh |
30 per cent |
148.
This
will provide major relief to all tax payers in the new regime. An individual
with an annual income of ` 9 lakh will be required to pay only
` 45,000/-. This is only 5 per cent of
his or her income. It is a reduction of 25 per cent on what he or she is
required to pay now, ie, ` 60,000/-. Similarly, an individual with
an income of ` 15
lakh would be required to pay only
` 1.5 lakh or 10 per cent of his or her
income, a reduction of 20 per cent from the existing liability of ` 1,87,500/.
149.
My
third proposal is for the salaried class and the pensioners including family
pensioners, for whom I propose to extend the benefit of standard deduction to
the new tax regime. Each salaried person with an income of ` 15.5
lakh or more will thus stand to benefit by ` 52,500.
150.
My
fourth announcement in personal income tax is regarding the highest tax rate
which in our country is 42.74 per cent. This is among the highest in the world.
I propose to reduce the highest surcharge rate from
37 per cent to 25 per cent in the new tax regime. This would result in
reduction of the maximum tax rate to 39 per cent.
151.
Lastly,
the limit of ` 3 lakh for tax exemption on leave
encashment on retirement of non-government salaried employees was last fixed in
the year 2002, when the highest basic pay in the government was ` 30,000/- pm. In line with the increase
in government salaries, I am proposing to increase this limit to ` 25 lakh.
152.
We
are also making the new income tax regime as the default tax regime. However,
citizens will continue to have the option to avail the benefit of the old tax
regime.
153.
Apart
from these, I am also making some other changes as given in the annexure.
154.
As
a result of these proposals, revenue of about ` 38,000
crore –
` 37,000 crore in direct taxes and ` 1,000
crore in indirect taxes – will be forgone while revenue of about ` 3,000
crore will be additionally mobilized. Thus, the total revenue forgone is about ` 35,000
crore annually.
155.
Mr.
Speaker Sir, with these words, I commend the Budget to this august House.
*****
Annexure to Part B of the Budget Speech
2023-24
Amendments relating to Direct Taxes
|
A. Providing Tax Relief under new personal tax regime |
||||||||||||||
|
A.1
The new tax regime for Individual and HUF, introduced by the Finance
Act 2020, is now proposed to be the default regime. A.2 This regime would also become the default
regime for AOP (other than co-operative), BOI and AJP. A.3
Any individual, HUF, AOP (other than co-operative), BOI or AJP not
willing to be taxed under this new regime can opt to be taxed under the old
regime. For those person having income under the head “profit and gains of
business or profession” and having opted for old regime can revoke that
option only once and after that they will continue to be taxed under the new
regime. For those not having income under the head “profit and gains of
business or profession”, option for old regime may be exercised in each year. A.4 Substantial relief is proposed under the
new regime with new slabs and tax rates as under:
A.5
Resident individual with total income up to `
5,00,000 do not pay any tax due to rebate under both old and new regime. It
is proposed to increase the rebate for the resident individual under the new
regime so that they do not pay tax if their total income is up to `
7,00,000. A.6 Standard deduction of `
50,000 to salaried individual, and deduction from family pension up to `
15,000, is currently allowed only under the old regime. It is proposed to
allow these two deductions under the new regime also. A.7
Surcharge on income-tax under both old regime and new regime is 10 per
cent if income is above `
50 lakh and up to `
1 crore, 15 per cent if income is above
`1
crore and up to `
2 crore, 25 per cent if income is above ` 2 crore and up to ` 5
crore, and 37 per cent if income is above ` 5 crore. It is proposed that the for those
individuals, HUF, AOP (other than co-operative), BOI and AJP under the new
regime, surcharge would be same except that the surcharge rate of 37 per cent
will not apply. Highest surcharge shall be 25 per cent for income above A.8
Encashment of earned leave up
to 10 months of average salary, at the time of retirement in case of an
employee (other than an employee of the Central Government or State
Government), is exempt under sub-clause (ii) of clause (10AA) of section 10
of the Income-tax Act (“the Act”) to the extent notified. The maximum amount
which can be exempted is `
3 lakh at present. It is proposed to issue notification to extend this limit
to `
25 lakh. |
||||||||||||||
|
B. SOCIO-ECONOMIC WELFARE MEASURES |
||||||||||||||
|
B.1 Promoting timely payments to Micro
and Small Enterprises In order to promote timely payments to micro
and small enterprises, it is proposed to include payments made to such
enterprises within the ambit of section 43B of the Act. Thus, deduction for
such payments would be allowed only when actually paid. It will be allowed on
accrual basis only if the payment is within the time mandated under the
Micro, Small and Medium Enterprises Development Act. B.2 Agnipath Scheme, 2022 The payment
received from the Agniveer Corpus Fund by the Agniveers enrolled in Agnipath Scheme, 2022 is proposed to be exempt from taxes. Deduction in the
computation of total income is proposed to be allowed to the Agniveer on the
contribution made by him or the Central Government to his Seva Nidhi account. B.3 Relief
to sugar co-operatives from past demand It is proposed
that for sugar co-operatives, for years prior to A.Y. 2016-17, if any
deduction claimed for expenditure made on purchase of sugar has been
disallowed, an application may be made to the Assessing Officer, who shall
recompute the income of the relevant previous year after allowing such
deduction up to the price fixed or approved by the Government for such
previous year. B.4 Increasing
threshold limit for Co-operatives to withdraw cash without TDS It is proposed to
enable co-operatives to withdraw cash up to ` 3 crore in a year without being subjected to TDS on such withdrawal. B.5 Penalty
for cash loan/transactions against primary co-operatives It is proposed
to amend section 269SS of the Act to
provide that where a deposit is accepted by a primary agricultural credit
society or a primary co-operative agricultural and rural development bank
from its member or a loan is taken from a primary agricultural credit society
or a primary co-operative agricultural and rural development bank by its
member in cash, no penal consequence would arise, if the amount of such loan
or deposit in cash is less than ` 2 lakh. Further,
section 269T of the Act is proposed to be amended to provide that where a
deposit is repaid by a primary agricultural credit society or a primary
co-operative agricultural and rural development bank to its member or such
loan is repaid to a primary agricultural credit society or a primary
co-operative agricultural and rural development bank by its member in cash,
no penal consequence shall arise, if the amount of such loan or deposit in
cash is less than ` 2 lakh. B.6 Relief
to start-ups in carrying forward and setting off of losses The condition of
continuity of at least 51 per cent shareholding for setting off of carried
forward losses is relaxed for an eligible start up if all the shareholders of
the company continue to hold those shares. At present this relaxation applies
for losses incurred during the period of 7 years from incorporation of such
start-up. It is proposed to increase this period to 10 years. B.7 Extension
of date of incorporation for eligible start up for exemption Certain start-ups
are eligible for some tax benefit if they are incorporated before 1st April,
2023. The period of incorporation of such eligible start-ups is proposed to
be extended by one year to before 1st April, 2024. B.8 Gold
to Electronic Gold Receipt The conversion of
physical gold to Electronic Gold Receipt and vice versa is proposed not to be
treated as a transfer and not to attract any capital gains. This would
promote investments in electronic equivalent of gold. B.9 Incentives
to IFSC Relocation of
funds to IFSC has certain tax exemptions, if the relocation is before
31.03.2023. This date is proposed to be extended to 31.03.2025. Further, any
distributed income from the offshore derivative instruments entered into with
an offshore banking unit is also proposed to be exempted subject to certain
conditions. B.10 Exemption
to development authorities etc. It is proposed to
provide exemption to any income arising to a body or authority or board or
trust or commission, (not being a company) which has been established or constituted by or
under a Central or State Act with the purposes of satisfying the need for
housing or for planning, development or improvement of cities, towns and
villages or for regulating any activity or matter, irrespective of whether it
is carrying out commercial activity. B.11 Facilitating
certain strategic disinvestments To facilitate
certain strategic disinvestments, it is proposed to allow carry forward of
accumulated losses and unabsorbed depreciation allowance in the case of amalgamation
of one or more banking company with any other banking institution or a
company subsequent to a strategic disinvestment, if such amalgamation takes
place within 5 years of strategic disinvestment. It is also proposed to
modify the definition of ‘strategic disinvestment’. B.12 15
per cent concessional tax to promote new manufacturing co-operative society In order to
promote the growth of manufacturing in co-operative sector, a new
co-operative society formed on or after 01.04.2023, which commences
manufacturing or production by 31.03.2024 and do not avail of any specified
incentive or deduction, is proposed to be allowed an option to pay tax at a
concessional rate of 15 per cent similar to what is available to new
manufacturing companies. |
||||||||||||||
|
C. EASE OF COMPLIANCE |
||||||||||||||
|
C.1 Ease
in claiming deduction on amortization of preliminary expenditure At present for
claiming amortization of certain preliminary expenses, the activity is to be
carried out either by the assessee or by a concern approved by the Board. In
order to ease the process of claiming amortization of these expenses it is
proposed to remove the condition of activity in connection with these
expenses to be carried out by a concern approved by the Board. Format for
reporting of such expenses by the assessee shall be prescribed. C.2 Increasing
threshold limits for presumptive taxation schemes In order to ease
compliance and to promote non-cash transactions, it is proposed to increase
the threshold limits for presumptive scheme of taxation for eligible
businesses from ` 2 crore to ` 3 crore and for
specified professions from ` 50 lakh to C.3 Extending
the scope for deduction of tax at source at lower or nil rate It is proposed to
allow a taxpayer to obtain certificate of deduction of tax at source to lower
or nil rate on sums on which tax is required to be deducted under section
194LBA of the Act by Business Trusts.
|
||||||||||||||
|
D. WIDENING & DEEPENING OF TAX BASE AND
ANTI AVOIDANCE |
||||||||||||||
|
D.1 It
is proposed to extend the deemed income accrual provision relating to sums of
money exceeding fifty thousand rupees, received from residents without
consideration to a not ordinarily resident with effect from 1st
April, 2023. D.2 It
is proposed to omit the provision to allow tax exemption to news agencies set
up in India solely for collection and distribution of news from the financial
year 2023-24. D.3 It
is proposed to tax distributed income by business trusts in the hands of a unit
holder (other than dividend, interest or rent which is already taxable) on
which tax is currently avoided both in the hands of unit holder as well as in
the hands of business trust. D.4 It
is proposed to withdraw the exemption from TDS currently available on
interest payment on listed debentures. D.5 With
respect to presumptive schemes for non-residents, it is proposed to disallow
carried forward and set off of loss computed as per books of account with
presumptive income. D.6 For
online games, it is proposed to provide for TDS and taxability on net
winnings at the time of withdrawal or at the end of the financial year.
Moreover, TDS would be without the threshold of D.7
The rate of TCS for foreign remittances for education and for medical
treatment is proposed to continue to be 5 per cent for remittances in excess
of `
7 lakh. Similarly, the rate of TCS on foreign remittances for the purpose of
education through loan from financial institutions is proposed to continue to
be 0.5 per cent in excess of `7
lakh. However, for foreign remittances for other purposes under LRS and
purchase of overseas tour program, it is proposed to increase the rates of
TCS from 5 per cent to 20 per cent. D.8 Tax
on capital gains can be avoided by investing proceeds of such gains in
residential property. This is proposed to be capped at `
10 crore. D.9 The
income from market linked debentures is proposed to be taxed as short-term
capital gains at the applicable rates. D.10 It
is proposed to provide for some provisions to minimise risk to revenue due to
undervaluation of inventory. D.11 It
is proposed to provide that where aggregate of premium for life insurance
policies (other than ULIP) issued on or after 1st April, 2023 is
above `
5 lakh, income from only those policies with aggregate premium up to `
5 lakh shall be exempt. This will not affect the tax exemption provided to
the amount received on the death of person insured. It will also not affect
insurance policies issued till 31st March, 2023. D.12 It is proposed to amend provisions for
computing capital gains in case of joint development of property to include
the amount received through cheque etc. as consideration. D.13 While
interest paid on borrowed capital for acquiring or improving a property can,
subject to certain conditions, be claimed as deduction from income, it can
also be included in the cost of acquisition or improvement on transfer,
thereby reducing capital gains. It is proposed to provide that the cost of
acquisition or improvement shall not include the amount of interest claimed
earlier as deduction. D.14 There
are certain assets like intangible assets or rights for which no
consideration has been paid for acquisition and the transfer of which may
result in generation of income. Their cost of acquisition is proposed to be
defined to be NIL. |
||||||||||||||
|
E. IMPROVING COMPLIANCE AND TAX ADMINISTRATION |
||||||||||||||
|
E.1 With
respect to rectification of orders by the Interim Board of Settlement, it is
proposed to provide that where the time-limit for amending an order by it or
for making an application to it expires on or after 01.02.2021 but before
01.02.2022, such time-limit shall stand extended to 30.09.2023. E.2 To
expedite the disposal of certain appeals pending with Commissioner (Appeals),
it is proposed to introduce a new authority in the rank of Joint
Commissioner/ Additional Commissioner [JCIT(Appeals)], for appeals against
certain orders passed by or with the approval of an authority below the rank
of Joint Commissioner. Certain related and consequential amendments are also
proposed in this regard. E.3 It
is proposed to reduce the minimum time period required to be provided by the
transfer pricing officer to assessee for production of documents and
information from 30 days to 10 days. E.4 It
is proposed to provide for appeal against penalty orders passed by
Commissioner (Appeals) under certain sections of the Act before the Appellate
Tribunal. It is also proposed to provide that an order under section 263 of
the Act passed by the Principal Chief Commissioner or Chief Commissioner and
any rectification order for the same shall also be appealable before the
Appellate Tribunal. Further, it is proposed to enable filing of memorandum of
cross-objections in all classes of cases against which appeal can be made to
the Appellate Tribunal. E.5 It
is proposed to amend section 132 of the Act, dealing with search and seizure,
to allow the authorised officer to take assistance of specific domain experts
like digital forensic professionals, valuers and services of other
professionals like locksmiths, carpenters etc. during the course of search
and also to aid in accurate estimation of undisclosed income held in the form
of property by the assessee. E.6 Section
170A of the Act, inserted vide Finance Act, 2022 is proposed to be
substituted to clarify that a modified return shall be furnished by an entity
to whom the order of the business reorganisation applies, and to introduce
provisions for assessment or reassessment in cases where such modified return
is furnished. E.7 It
is proposed that an order of assessment may be passed within a period of 12
months from the end of the relevant assessment year or the financial year in
which updated return is filed, as the case may be. It is also proposed that
in cases where search under section 132 of the Act or requisition under
section 132A of the Act has been made, the period of limitation of pending
assessments shall be extended by twelve months. E.8 It
is proposed to make amendments to empower the Central Government to make
modifications in the already notified schemes regarding e-Verification,
Dispute Resolution, Advance Rulings, Appeal and Penalty, at any time to
enable better implementation of such schemes. E.9 It
is proposed to limit the time for furnishing of a return for reassessment.
Further, it is also proposed to
provide that in cases where search related information is available
after 15th March of any financial year, an additional period of fifteen days
shall be allowed for issuance of notice, for assessment/reassessments etc,
under section 148 of the Act. It is also proposed to clarify that the
specified authority for granting approval shall be Principal Chief
Commissioner or Principal Director General or Chief Commissioner or Director
General. E.10 It
is proposed to provide a penalty of ` 5,000 if there is any inaccuracy in the
statement of financial transactions submitted by a prescribed reporting
financial institution due to false or inaccurate information submitted by the
account holder. E.11 It
is proposed to amend section 271C and section 276B of the Act to provide for
penalty and prosecution where default in TDS relates to transaction in kind. E.12.
It is proposed to amend the time period for filing of appeal against
the order of the Adjudicating authority under Benami Act within a period of
45 days from the date when such order is received by the Initiating Officer
or the aggrieved person. The definition of ‘High Court’ is also proposed to
be modified to allow determination of jurisdiction for filing appeal in the
case of non-residents. |
||||||||||||||
|
F. RATIONALISATION |
||||||||||||||
|
F.1 The
restriction on interest deductibility on interest payment to overseas
associated enterprise does not apply to those in the business of banking and
insurance. It is proposed to extend this benefit to non-banking financial
companies, as may be notified. F.2 TDS
on payment of certain income to a non-resident is currently at the rate of 20
per cent, but the tax rate in treaties may be lower. It is proposed to allow
the benefit of tax treaty at the time of TDS on such income under section
196A of the Act. F.3 At
present the TDS rate on withdrawal of taxable component from Employees’
Provident Fund Scheme in non-PAN cases is 30 per cent. It is proposed to
reduce it to 20 per cent, as in other non-PAN cases. F.4 Sometimes,
tax for income of an earlier year is deducted later, while tax thereon has
already been paid in the earlier year. Amendment is proposed to facilitate
such taxpayers to claim credit of this TDS in the earlier year. F.5 Higher
TDS/TCS rate applies, if the recipient is a non-filer i.e. who has not
furnished his return of income of preceding previous year and has aggregate
of TDS and TCS of `
50,000 or more. It is proposed to exclude a person who is not required to
furnish the return of income for such previous year and who is notified by
the Central Government in the Official Gazette in this behalf. F.6 It
is proposed to clarify that the amount of advance tax paid is reduced only
once for computing the interest payable u/s 234B in the case of an updated
return. F.7 It
is proposed to extend taxability of the consideration (share application
money/ share premium) for shares exceeding the face value of such shares to
all investors including non-residents. F.8 It
is proposed to enable prescription of a uniform methodology for computing the
value of perquisite with respect to accommodation provided by employers to
their employees. F.9 It
is proposed to provide a time limit for an SEZ unit to bring the proceeds
from exports of goods or services into India. The filing of income-tax return
is also proposed to be made mandatory for claiming deduction on export
income. F.10 Due
to changes in classification of non-banking financial companies by the
Reserve Bank of India, it is proposed to make necessary amendments to align
such classifications in the Act with the same. F.11 It
is proposed to clarify that for taxability under section 28 of the Act as
well for tax deduction at source under section 194R of the Act, the benefit
could also be in cash. F.12 It
is proposed to make amendments relating to exemption provided to charitable
trusts and institution to · provide clarity on tax treatment on replenishment of corpus and
on repayment of loans/borrowings; · treat only 85 per cent of donation made to another trust as
application; · omit the redundant provisions related to rolling back of
exemption; · combine provisional and regular registration in some cases; · modify the scope of specified violation; · provide for payment of tax on assets if a trust does not apply
for exemption after getting provisional exemption and for re-exemption after
expiry of exemption; · align of time for furnishing of certain forms; · clarify that the time provided for furnishing return of income
for claiming exemption shall not include the time provided for furnishing
updated return. F.13 It
is proposed to omit certain name-based funds from section 80G of the Act,
which provides for deduction of donation to such funds from the income of the
donor. F.14 It
is proposed to provide that where refund is due to a person, such refund
shall be set off against existing demand, and if proceedings for assessment
or reassessment are pending in such case, the refund due will be withheld by
the Assessing Officer till the date of assessment or reassessment. |
||||||||||||||
|
G. OTHERS |
||||||||||||||
|
G.1 It
is proposed to omit section 88 and some of the clauses of section 10 of the
Act which are no longer in force. G.2 It
is proposed to extend tax exemption to Specified Undertaking of Unit Trust of
India (SUUTI) till 30th September, 2023. It is also proposed to
enable the Central Government to notify the date of vacation of office of
administrator of SUUTI. G.3 It
is proposed to decriminalize certain acts of omission of liquidators under
section 276A of the Act with effect from 1st April, 2023. |
Annexure to Part B of the Budget Speech
2023-24
Amendments relating to Indirect Taxes
|
A. LEGISLATIVE CHANGES IN CUSTOMS LAWS |
|
A.1
Amendments in the Customs Act, 1962 Section 25 (4A) is being amended to exclude certain categories of conditional
customs duty exemptions from the validity
period of two years, such as, notifications issued in relation to
multilateral or bilateral trade agreements; obligations under international
agreements, treaties, conventions including with respect to UN agencies,
diplomats, international organizations; privileges of constitutional
authorities; schemes under Foreign Trade Policy; Central Government schemes
having a validity of more than two years; re-imports, temporary imports,
goods imported as gifts or personal baggage; any other duties of Customs
under any other law in force including
IGST levied under section 3(7) of Customs Tariff Act, 1975, other than
duty of customs levied under section 12 of the Customs Act 1962. Section 127C is being amended to specify
a time limit of nine months from date of filing application for passing final
order by Settlement Commission. A.2 Amendments in the provisions relating to
Anti-Dumping Duty (ADD), Countervailing Duty (CVD), and Safeguard Measures Sections 9, 9A, 9C of the Customs Tariff Act are being amended to clarify the
intent and scope of these
provisions. They are also being validated retrospectively with effect from
1st January 1995. A.3
Amendments in the First Schedule to the Customs Tariff Act,
1975 The First Schedule to the Customs Tariff
Act, 1975 is being amended to increase the rates on certain tariff items with
effect from 02.02.2023 and also modify the rates on certain other tariff
items as part of rate rationalisation with effect from date of assent. The First Schedule to the Customs Tariff
Act is being proposed to be amended in accordance with HSN 2022 amendments. New tariff lines are also proposed to be
created, which will help in better identification of millet-based products,
mozzarella cheese, medicinal plants and their parts, certain pesticides,
telecom products, synthetic diamonds, cotton, fertilizer grade urea etc. This
will also help in trade facilitation by better identification of the above
items, getting clarity on availing concessional import duty through various
notifications and thus reducing dwell time. These changes shall come into effect
from 01.05.2023. A.4
Amendment in the Second Schedule to the Customs Tariff
Act, 1975 The Second Schedule (Export Tariff) is
being amended to align the entries under heading 1202 with that of the First
Schedule (Import Tariff) . |
|
B. LEGISLATIVE
CHANGES IN GST LAWS |
|
B.1
Decriminalisation Section 132 and section 138 of CGST Act are being
amended, inter alia, to - ·
raise the minimum threshold of tax amount for launching prosecution
under GST from ` one crore to ` two crore, except for the offence of
issuance of invoices without supply of goods or services or both; ·
reduce the compounding amount from the present range of 50 per
cent to 150 per cent of tax amount to
the range of 25 per cent to 100 per cent; ·
decriminalize certain offences specified
under clause (g), (j) and (k) of sub-section (1) of section 132 of CGST Act,
2017, viz.- o obstruction or
preventing any officer in discharge of his duties; o deliberate tempering
of material evidence; o failure to supply
the information. B.2 Facilitate e-commerce for micro
enterprises Amendments are being made in section 10 and
section 122 of the CGST Act to enable unregistered suppliers and composition
taxpayers to make intra-state supply of goods through E-Commerce Operators
(ECOs), subject to certain conditions. B.3 Amendment to Schedule III of CGST
Act, 2017 Paras 7, 8 (a) and 8 (b) were inserted in Schedule
III of CGST Act, 2017 with effect from 01.02.2019 to keep certain
transactions/ activities, such as supplies of goods from a place outside the
taxable territory to another place outside the taxable territory, high sea
sales and supply of warehoused goods before their home clearance, outside the
purview of GST. In order to remove the doubts and ambiguities regarding
taxability of such transactions/ activities during the period 01.07.2017 to
31.01.2019, provisions are being incorporated to make the said paras
effective from 01.07.2017. However, no refund of tax paid shall be available
in cases where any tax has already been paid in respect of such transactions/
activities during the period 01.07.2017 to 31.01.2019. B.4 Return filing under GST Sections 37, 39, 44 and 52 of CGST Act, 2017 are
being amended to restrict filing of returns/ statements to a maximum period
of three years from the due date of filing of the relevant return /
statement. B.5 Input Tax Credit for expenditure
related to CSR Section 17(5) of CGST Act is being amended to
provide that input tax credit shall not be available in respect of goods or
services or both received by a taxable person, which are used or intended to
be used for activities relating to his obligations under corporate social
responsibility referred to in section 135 of the Companies Act, 2013. B.6 Sharing of information A
new section 158A in CGST Act is being inserted to enable sharing of the
information furnished by the registered person in his return
or application of registration or statement of outward supplies, or the
details uploaded by him for generation of electronic invoice or E-way bill or any other details on the common portal,
with other systems in a manner to be prescribed B.7 Amendments in section 2 clause (16)
of IGST Act, 2017 Clause
(16) of section 2 of IGST Act is amended to revise the definition of
“non-taxable online recipient” by
removing the condition of receipt of online information and database access or retrieval
services for purposes other than commerce, industry or any other business or
profession so as to provide for taxability of OIDAR service provided by any
person located in non-taxable territory to an unregistered person receiving
the said services and located in the taxable territory. Further, it also
seeks to clarify that the persons registered solely in terms of clause (vi)
of Section 24 of CGST Act shall be treated as unregistered person for the
purpose of the said clause. B.8 Online information and database
access or retrieval services Clause (17) of section 2 of IGST Act is being amended to
revise the definition of “online information and database access or retrieval
services” to remove the condition of rendering
of the said supply being essentially automated and involving minimal human
intervention. B.9 Place of supply in certain cases Proviso to
sub-section (8) of section 12 of the IGST Act is being omitted so as to
specify the place of supply, irrespective of destination of the goods, in cases where
the supplier of services and recipient of services are located in India. |
C. CUSTOMS
DUTY RATE CHANGES
C.1. Reduction
in basic customs duty to reduce input costs, deepen value addition, to promote
export competitiveness, correct inverted duty structure so as to boost domestic
manufacturing etc [with effect from 02.02.2023]
|
S. No. |
Commodity |
From (per cent) |
To (per cent) |
|
|
I. |
Agricultural Products |
|||
|
1. |
Pecan Nuts |
100 |
30 |
|
|
2. |
Fish meal for manufacture
of aquatic feed |
15 |
5 |
|
|
3. |
Krill meal for
manufacture of aquatic feed |
15 |
5 |
|
|
4. |
Fish lipid oil for
manufacture of aquatic feed |
30 |
15 |
|
|
5. |
Algal Prime (flour)
for manufacture of aquatic feed |
30 |
15 |
|
|
6. |
Mineral and Vitamin
Premixes for manufacture of aquatic feed |
15 |
5 |
|
|
7 |
Crude glycerin for
use in manufacture of Epichlorohydrin |
7.5 |
2.5 |
|
|
8 |
Denatured
ethyl alcohol for
use in manufacture of industrial chemicals. |
5 |
Nil |
|
|
II. |
Minerals |
|||
|
1 |
Acid grade fluorspar
(containing by weight more than 97 per cent of calcium fluoride) |
5 |
2.5 |
|
|
III. |
Gems and Jewellery Sector |
|||
|
1. |
Seeds for use in
manufacturing of rough lab-grown diamonds |
5 |
Nil |
|
|
IV. |
Capital Goods |
|||
|
1. |
Specified capital
goods/machinery for manufacture of lithium-ion cell for use in battery of electrically
operated vehicle (EVs) |
As applicable |
Nil (up to 31.03.2024) |
|
|
V. |
IT and Electronics
|
|||
|
1. |
Specified chemicals/items for manufacture of Pre-calcined Ferrite
Powder |
7.5 |
Nil (up to 31.03.2024) |
|
|
2. |
Palladium Tetra Amine Sulphate for manufacture of parts of connectors |
7.5 |
Nil (up to 31.03.2024) |
|
|
3. |
Camera lens and its inputs/parts for use in manufacture of camera
module of cellular mobile phone |
2.5 |
Nil |
|
|
4. |
Specified parts for manufacture of open cell of TV panel |
5 |
2.5 |
|
|
VI. |
Electronic Appliances |
|||
|
1. |
Heat coil for
manufacture of electric kitchen chimneys |
20 |
15 |
|
|
VII. |
Others |
|||
|
1. |
Warm blood horse
imported by sports person of outstanding eminence for training purpose |
30 |
Nil |
|
|
2. |
Vehicles, specified automobile parts/components, sub-systems and tyres
when imported by notified testing agencies, for the purpose of testing and/
or certification, subject to conditions. |
As applicable |
Nil |
|
C.2. Increase in Customs
duty [with effect from 02.02.2023]
|
S. No. |
Commodity
|
Rate of duties |
|
|
From (per cent) |
To (per cent) |
||
|
I. |
Chemicals |
||
|
1. |
Styrene |
2 (+0.2 SWS) |
2.5 (+0.25 SWS) |
|
2. |
Vinyl chloride monomer |
2 (+0.2 SWS) |
2.5 (+0.25 SWS) |
|
II |
Petrochemical |
||
|
1 |
Naphtha |
1 (+ 0.1 SWS) |
2.5 (+0.25
SWS) |
|
III. |
Precious Metals |
||
|
1. |
Silver (including silver plated with gold or platinum), unwrought or
in semi-manufactured forms, or in powder form |
7.5 (+ 2.5 AIDC+ 0.75 SWS) |
10 (+ 5 AIDC+ Nil SWS) |
|
2. |
Silver dore |
6.1 (+ 2.5 AIDC+ 0.61 SWS) |
10 (+ 4.35 AIDC+ Nil SWS) |
|
IV. |
Gems and Jewellery Sector |
||
|
1. |
Articles of Precious Metals such as gold/silver/platinum |
20 (+Nil AIDC +2 SWS) |
25 (+Nil AIDC +Nil SWS) |
|
2. |
Imitation Jewellery |
20 or ` 400/kg., whichever is higher
(+Nil AIDC +2 or ` 40 per Kg SWS) |
25 or ` 600/kg., whichever is higher
(+Nil AIDC +Nil SWS) |
|
V. |
Automobiles |
||
|
1 |
Vehicle (including electric vehicles) in
Semi-Knocked Down (SKD) form . |
30 (+3 SWS) |
35 (+Nil SWS) |
|
2 |
Vehicle in Completely Built Unit (CBU) form, other
than with CIF more than USD 40,000 or with engine capacity more than 3000 cc
for petrol-run vehicle and more than 2500 cc for diesel-run vehicles, or with
both |
60 (+6 SWS) |
70 (+Nil SWS) |
|
3 |
Electrically operated Vehicle in Completely Built
Unit (CBU) form, other than with CIF value more than USD 40,000 |
60 (+ 6 SWS) |
70 (+Nil SWS) |
|
VI. |
Others |
||
|
1. |
Bicycles |
30
(+ Nil AIDC +3 SWS) |
35
(+ Nil AIDC +Nil SWS) |
|
2. |
Toys and parts of toys (other than parts of electronic toys) |
60
(+Nil AIDC+ 6 SWS) |
70
(+Nil AIDC+ Nil SWS) |
|
3. |
Compounded
Rubber |
10
|
25 or ` 30/kg., whichever is lower |
|
4. |
Electric
Kitchen Chimney |
7.5
|
15
|
* AIDC -Agriculture Infrastructure
Development Cess; SWS – Social Welfare Surcharge
D. CHANGES IN CENTRAL
EXCISE
D.1. NCCD Duty
rate on Cigarettes [with effect
from 02.02.2023]
|
Description
of goods |
Rate of excise duty |
|
|
From (` per 1000 sticks) |
To (` per 1000 sticks) |
|
|
Other than filter
cigarettes, of length not exceeding 65 mm |
200 |
230 |
|
Other than filter
cigarettes, of length exceeding 65 mm but not exceeding 70 mm |
250 |
290 |
|
Filter cigarettes of
length not exceeding 65 mm |
440 |
510 |
|
Filter cigarettes of
length exceeding 65 mm but not exceeding 70 mm |
440 |
510 |
|
Filter cigarettes of
length exceeding 70 mm but not exceeding 75 mm |
545 |
630 |
|
Other cigarettes |
735 |
850 |
|
Cigarettes of
tobacco substitutes |
600 |
690 |
D.2. Other changes in Central Excise [with
effect from 02.02.2023]
In order to promote green fuel, central excise duty exemption is being provided to
blended Compressed Natural Gas from so much of the amount as is equal to the
GST paid on Bio Gas/Compressed Bio Gas contained in the blended CNG.
E. OTHERS
There are few other changes of minor nature.
For details of the budget proposals, the Explanatory Memorandum and other
relevant budget documents may be referred to.
*****
COMMENTS