Following are the Budget 2008-09 key points, which in some way might matter to the Indian retail fraternity. Indiaretailing penned down the following from Finance Minister P Chidambaram’s speech that was delieverd in the parliament today.

    • No change in peak rate of customs duty
    • PAN to be required for all transaction in the securities market
    • Small service providers to go out of the tax barrier
    • No changes for the corporate taxpayers
    • Central sales tax to be reduced to two per cent from April 2008
    • Excise duty on buses & chassis cut from 16 per cent to 12 per cent
    • CENVAT reduced from 16 per cent to 14 per cent on all goods
    • Few IT, hardware components exempted from customs duty
    • Customs duty on few bulk drugs cut to 5 per cent vs 10 per cent
    • Customs duty on project imports cut to 5 per cent vs 7.5 per cent
    • Direct tax proposals revenue neutral
    • Central sales tax cut to 2 per cent from 3 per cent
    • Banking cash transaction tax withdrawn
    • Securities transaction tax (STT) rates unchanged
    • Dividend distribution tax (DDT) unchanged at 15 per cent
    • Government to introduce commodities transaction tax like STT
    • Levy of STT only on option premiums
    • Short-term cap gains hiked to 15 per cent
    • Production of seeds added to VAT list
    • 10 per cent income tax for income in the range of Rs 1.5-3 lakh
    • 30 per cent income tax for income above Rs 5 Lakh
    • No change in corporate tax
    • Personal income tax exemption slab for women at Rs 1.8 lakh
    • Personal income tax exemption slab at Rs 1.5 lakh
    • Filter, non-filter cigarettes to be taxed at par
    • Excise duty on bulk cement at Rs 400/tonne
    • Exise cut on all pharma goods at 8 per cent vs 16 per cent
    • Excise duty on some paper types cut to 10 per cent from 12 per cent