NEW DELHI: The Union Cabinet has approved amendments in the Customs and Excise Act relating to abolition of cesses and surcharges on various goods and services to facilitate implementation of
Central Excise Tariff Act
, 1985 and amendment or repeal of the provisions relating to Acts under which cesses are levied.
Earlier this week, the Cabinet had cleared four legislations for implementing GST as the government sprints to meet the July 1 launch schedule of the indirect tax reform, which can add up to 2 per cent to India's economic growth.
The Bills on compensating states for any loss of revenue from the GST rollout in the first five years as well as those enabling levy of the new tax on intra- or inter-state movement of goods and services will be introduced in Parliament this week.
The decision to do away with existing cesses came along with cabinet approval for amendments to the Customs Act, the Customs Tariff Act, Central Excise Act and repeal of the Central Excise Tariff Act.
In addition, new clauses are proposed to be incorporated in the Customs Act to provide for furnishing of information on import and export of goods to detect under or over-valuation and misuse of export promotion schemes.
The approval of Parliament, along with that of all state Assemblies, will complete the legislative process for the one-nation-one-tax regime through merger of central taxes such as excise duty and service tax and state levies including VAT.
News Courtesy - Economic Times
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