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Service tax, excise duty hiked to 12%-news16032012

Friday, March 16, 2012

Finance minister Pranab Mukherjee on Friday raised rates of service tax and excise duty to 12% each, respectively.

Announcing this in Parliament, finance minister Pranab Mukherjee said service tax and excise duty rates will be raised to 12% in 2012-13.

Currently, the Centre levies 10.3% charges as service tax and 10% as excise duty .

Higher service tax rate will enable the Centre to raise Rs18,650 crore, the FM said in his Budget.

The step will be a big boost for the Centre’s huge expenditure burden.
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