Giving relief to the industry reeling under the impact of slowdown, the Government reduced by two per cent rates of excise duty and service tax. While the general excise duty has been reduced from 10 per cent to 8 per cent, the rate of service tax cut from 12 per cent to 10 per cent.
Service Tax has been reduced for the first time since it was imposed. Excise duty is falling continuously for last 10 years; 18 to 16 to 14 to 10 to 8.