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The budget proposed to double the annual maximum ESC liability to 120 million rupees and also made big changes in income tax, widening the personal income tax slabs and increasing the rates A finance ministry statement said the cess and excise duty applicable on selected imported items will be effective from November 07, 2008. .
The Value Added Tax and Port and Airport Development Levy will be effective from January 1, 2009.
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The present VAT rate of 15 percent will fall to 12 percent but the 20 percent VAT on motor vehicles, luxury goods and liquor will continue to be applicable.
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The PAL is being increased to five percent from three percent but an existing rate of two percent on selected items will not change.
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The statement said the proposed changes to the Income Tax and Economic Service Charge will be effective from April 1, 2009.