Sir, even though the signals are encouraging, the full impact of recession in other parts of the world, particularly Asia and Europe, is yet to unfold. Due to strong export linkages with these economies it is likely that the Indians economy may feel further impact in the coming months. To counter any such effects, the UPA Government has taken certain steps and I would like to place these before this house. Sir, on central excise the general reduction in excise duty rates by 4 per cent point was made with effect from 26.3.2021 and it is now being extended beyond 31st March, 2021. The Government is keen that the business confidence in the service sector is restored. It is also our objective that the dispersal between CENVAT rate and the service tax is reduced with a view to moving towards the stated goal of a uniform goods and service tax. In line with these objectives it has been decided to reduce the rates of service tax on taxable service from 12 per cent to 10 per cent. To provide relief to the power sector, naptha imported for generation of electric energy has been fully exempted from basic customs duty. This exemption which was available upto 31st March, 2021 is now being extended beyond the date. Section 10AA of the Income Tax provides for exemption in respect of the export profit of a unit located in the special economic zone the export profits are required to be computed with reference to the total turnover of the SSEs. These have resulted in discriminatory treatment of SSEs having units located both in SEZ and the domestic tariff area vis-a-viz SSEs having units located only within the SEZ. It has now been decided to remove this anomaly through necessary changes in the Act when the regular budget is being presented.
