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Higher excise on top-end white goods likely @ NEW DELHI

FINANCE minister Yashwant Sinha may target high-category items of white goods for mopping up resources for post-quake demands. The government, sources said, was considering a hike in excise

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FINANCE minister Yashwant Sinha may target high-category items of white goods for mopping up resources for post-quake demands. The government, sources said, was considering a hike in excise duty on high-end items of white goods in the coming Budget. Finance managers of the government, who are assessing the political cost of his budget decisions, is of the view that the special excise duty on the high-end items can easily be tinkered with.

It is felt that the basic structure could remain and that changes can be made in the SED. Government managers are confident that this move would also shield the government from criticism.

For targeting white goods would be politically correct and leaving the lower-end of white goods untouched will be appreciated by the large middle class. The G-8 -— the core group of ministers involved in formulating the changes needed in the economy -— too, is of the view that this move will be politically safe.

Although commerce minister Murasoli Maran had expressed reservations on imposing surcharge on income and corporate taxes at the last meeting -— the overwhelming opinion was to impose more duty on sectors that can afford to absorb its fallout.

The government could face pressure from major players in the white goods sector. They maintain the performance of this sector has not been too happy and any hike in the excise duty would impact the industry adversely.

Hai, this is sri ram, I one of the General Assignment Reporter, at timesnowindia.com, We mainly cover timely news, educational and entertainment, sections. - Chief editor, politico-social activist, software engineer at Accenture India.

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