Schedule date for deregulations of petroleum products to be adhered (April 2002)
Subsidy on essential commodities notably LPG and kerosene to continue, albeit at a lower rate. This included the freight subsidy to far-flung places. As a result prices of LPG cylinder increased by Rs 40 per cylinder and kerosene by Rs 1.5/litre. Such subsidies to be reduced over a 3-5 year time frame.
Cess on crude increased from Rs 900/tonne to Rs 1800/ tonne.
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Excise duty on kerosene reduced from 8% to 4%.
50p cess on diesel to be levied to fund additional outlays on infrastructure projects.
Capital goods imports for LNG (liquefied natural gas) degasification plants customs duty reduced from 25% to 5%.
Higher thrust on concrete roads in road projects and lower excise duty on cars and CV's
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Excise duty on LNG (liquefied natural gas) exempted. Countervailing duty (CVD) exemption to continue.
2% cess levied on all taxes including excise.
No credit of cess on motor spirit, high-speed diesel and light diesel oil.
Existing exemption on naphtha/LNG used for generating synthetic gas or ammonia for manufacture of Heavy water extended to naphtha/LNG for generation of steam.
Excise duty on gas stoves with a maximum retail price of Rs 2,000 per unit reduced from 16% to 8%.
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