Bring down excise, service tax to 8%: Kelkar panel

Govt Won't Stagger Food Law Rollout

New Delhi: The Union government on Friday snubbed the recommendation of its own expert panel to stagger the implementation of the proposed food security law, in a loud indication of its plan for a 
mega rollout of the populist welfare scheme over the next few months. 
    The government made public its disagreement even before the much-anticipated report of the Vijay Kelkar Committee was released for public comment. 
    The recommendations were much awaited as they were seen fit for the government's belt-tightening exercise. 
    The panel, headed by the former finance secretary, recommended a series of steps needed to repair battered finances, including stepping up the disinvestment drive, slashing subsidies and revamping tax laws so that excise and service tax rates could be lowered to 8% from 12% over the next few years. 
. may hit 50/$ in 3-4 months: Govt 
T^he expects government the rupee has to said it appreciate to around 50 per dollar in three-four months on higher foreign inflows. P 21 
Panels to push cash transfer plan 
T^he many Centre panels has to set expedite up the process of launching the cash transfer system for major subsidies. P 11 KELKAR'S FISCAL FITNESS PLAN 
TAXES 
Move to GST, cut excise & service tax rates to 8% Reduce service exemptions such as those to non-profit sector Revamp tax admin, process more data on taxpayers 
SUBSIDIES 
Move to market-based price for diesel, kerosene, cooking gas by Mar 2014 Raise fertiliser and food prices Shift to direct cash transfers 
OTHERS 
Monetise govt land Step up pace of disinvestment, evolve new models

THE INDIAN ECONOMY IS POISED ON THE EDGE OF A FISCAL PRECIPICE 
—KELKAR PANEL REPORT