NEW DELHI: The 2010-11 general budget on Friday provided considerable relief to income tax payers by raising the slabs at two levels but hiked central excise duty on non-petroleum products across the board from 8 to 10 per cent and basic duty on crude and petroleum products besides effecting a one-rupee increase per litre on petrol and diesel. The entire opposition walked out of Parliament’s Lower House during the presentation by India’s Finance Minister Pranab Mukherjee, dubbing it “highly inflationary” as he partially rolled back the stimulus by hiking the ad valorum component of excise duty on large cars and multi-utility vehicles by two per cent to 22 per cent. The budget also raised specific rates of duty on Portland cement and cement clinker. The basic duty of 5 per cent on crude petroleum, 7.5 per cent on diesel and petrol and 10 per cent on other refined products is being enhanced.

The central excise duty on petrol and diesel is being enhanced by Re one per litre. The proposals relating to customs and central excise are estimated to result in a net revenue gain of Rs 43,500 crore for the year. The proposals for service tax, in which government plans to bring in some more services, will result in a net revenue gain of Rs 3,000 crore.