New Delhi: Soon after he rolled out Union Budget for 2007-8 in Parliament, Finance Minister P Chidambaram spoke on its various provisions.
He said that in view of the co-operation shown by tax payers to the revenue department, he's increased the exemption limit for all assesses.
"In the current year, there has been better tax compliance by individuals and I hope this trend will continue. The current slabs in rates of personal income tax were introduced only two years ago and they constitute a moderate tax regime," he said.
"A comprehensive review should await the proposed I-T code which will be introduced in Parliament this year. Without altering the rate, I'm inclined to consider giving some relief to tax payers," he added.
Speaking on inflation, the Finance Minister said the Government was concerned about rising prices and was taking steps to bring down inflation.
"Global commodity prices have put pressure on domestic prices. Supply constraints have emerged in wheat, pulses and edible oil. Average inflation estimated between 5.2 - 5.4 per cent, which is higher than the 4.4 per cent last year," Chidambaram said.
"As far as the Government is concerned, a number of measures on fiscal and monetary supply have been taken to maintain prices stability and if required, the Government will not hesitate to take more measures," he added.
CNN-IBN's Special Investigation Team had shown how the tobacco industry in the northeast was taking advantage of the tax-free policy to claim subsidies amounting to about Rs 300 crore in the last five years.
The Finance Minister has plugged that loophole in this budget: "I have proposed to withdraw exemption for Pan Masala containing tobacco and other tobacco products that are now given to North East states,"
"Based on comprehensive review of exemptions and having posted them on website and having invited comments, I proposed to remove certain excise duties exemptions which are redundant and out of utility," he added.
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