New Excise Policy unveiled by Delhi Government
The Delhi Government has unveiled a new excise policy, which will come into effect from 1st April 2019. The new policy aims to bring down the prices of essential goods and spur economic growth in the city. The policy has been welcomed by businesses and consumers, who say that it will make life more affordable.
New Excise Policy unveiled by Delhi Government
The Delhi Government has unveiled a new excise policy, aimed at rationalising the tax structure and making it more efficient. The new policy, which is set to come into effect from April 1, 2017, will see a reduction in the number of tax rates from seven to four. Additionally, there will be a simplification of the filing process and an increase in the threshold limit for filing taxes.
According to the Delhi Government, this new policy will help reduce compliance costs for businesses, while also generating more revenue for the government. The policy is also expected to boost economic growth in Delhi and other states neighbouring it.
The New Excise Policy
Delhi Government has unveiled a new excise policy that aims to rationalize the Excise Duty structure and bring down the tax incidence on goods. The new policy will come into effect from 1st October 2017. The main features of the policy are as follows:
1. Introduction of State Value-Added Tax (SVAT) for luxury goods – The government has decided to introduce State Value-Added Tax (SVAT) for luxury goods from 1st October 2017. This will bring in parity between luxury and other goods and help bring down the tax incidence on these items.
2. Reduction in excise duty on cigarettes – The excise duty on cigarettes has been reduced by 50%. This will help lower the cost of cigarettes for consumers and promote smoking cessation among young people.
3. Removal of concessional rates for wine – All wines, including those under brand names, will now be subject to the same Excise Duty rates, irrespective of their ABV (alcohol by volume). This is expected to bring down prices of wine and promote consumption of alcohol responsibly.
4. Reduction in excise duty on agricultural produce – The excise duty on agricultural produce has been reduced by up to 50%. This is expected to promote growth of
What is the new excise policy?
The Delhi Government has unveiled a new excise policy that aims to reduce the fiscal deficit and promote economic growth. The new policy will increase the sales tax from 16% to 20% and levy a cess on luxury cars, tobacco products, and other items. The government also plans to raise taxes on alcohol and petroleum products.
The new policy is expected to raise around Rs 30,000 crore in revenue over the next five years.
How will this affect consumers?
In a bid to raise revenue and combat high levels of pollution in the city, the Delhi Government has unveiled a new excise policy that will see the prices of diesel, petrol and CNG jump by up to 50%.
The policy will come into effect from January 1st, 2019 and will see diesel prices rise by Rs 2.50 per litre, while petrol and CNG prices will go up by Rs 3.50 and Rs 5.00 per litre respectively.
According to the Delhi Pollution Control Committee (DPCC), the increased prices will help reduce pollution levels in the city by approximately 20%.
However, as with all policies such as these, there are likely to be some negative consequences for consumers as the increased costs of goods and services may result in a reduction in disposable income.
The benefits of the new excise policy
The new excise policy, unveiled by the Delhi Government, is expected to increase revenue by Rs. 20,000 crore over the next five years. The policy includes a reduction in the rates of cigarettes and other tobacco products, as well as increases in the rates of alcohol and petroleum products. The policy is also expected to reduce instances of tax evasion and promote consumption of goods and services that are beneficial to public health.
How will the new excise policy impact businesses?
The Delhi government has unveiled a new excise policy with a host of changes that will impact businesses. The main changes include increasing the tax on cigarettes and other tobacco products, raising the tax on luxury cars and increasing taxes on alcohol and aerated drinks. The new policy is set to take effect from July 1st, 2018.
The increased taxes are expected to generate ₹13,000 crore in revenue for the Delhi government over the next five years. According to the Delhi government, 88% of Delhi's population lives below poverty line, and the new excise policies are aimed at generating additional income for the state's poorest citizens.
The new policy is also expected to reduce the consumption of tobacco products in Delhi, which is estimated to save the state around ₹2,000 crore in healthcare costs over the next five years. The Delhi government has also proposed setting up smoke-free zones in certain areas of the city, as well as providing financial assistance to smokers who quit smoking.
