India cuts excise duty by 2%

The External Affairs Minister and acting Finance Minister Pranab Mukherjee declares cut in excise duty and service tax by 2%. The cut is a major step by the government to protect the interest of Indian industries and people.

The global financial crisis has huge impact on Indian economy. The duty reductions, seen as costing the exchequer Rs 30,000 crore, come over and above the 4% cut in central value added tax announced in December, which has now been extended beyond March 31 this year.

The government has been taking measures to bail out the economy from the impact of global meltdown. Another major concern for the government is the check on the number of job losses due to the global meltdown. On Tuesday the Lok Sabha approved the cut in the excise and service tax by 2 per cent in India.