CII calls for cut in excise duty on fuel

NEW DELHI: Industry body CII in its Budget suggestions has recommended lowering the excise duty on fuel to boost consumption, especially at the lower income level, arguing that fuel prices significantly drive inflation.
The Budget could also consider reducing marginal tax rates for personal income up to Rs 20 lakh per annum. This would help trigger the virtuous cycle of consumption, higher growth and higher tax revenue, said CII. Asserting that the gap between the highest marginal rate for individuals at 42.7% and the normal corporate tax rate at 25.2%, is high, it said, inflation has reduced the buying power of lower and middle-income earners.