New Delhi : Budget proposes to raise the service tax from 10 percent to 12 to all services except those to be included in the negative list. The list comprises 17 heads including the services provided by the government or local authorities except a few specified services where they compete with the private sector.

Pre-school and school education, vocational education, renting of residential dwelling, amusement services, public transportation, health care, charities, religious and sportspersons, performing artists, advocates providing services to non-business entities, independent journalists and services by way of animal care and car parking are included in 17 list which will not attract service tax.

To harmonize central excise and service tax, a common registration form EST-1 will be introduced. A Study Team will examine the possibility of a common tax code for both service tax and central excise. A new scheme to simplify refunds for exporters of goods also to be introduced. Mukherjee said, the service tax proposal is expected to net 18,660 crore rupees.

The budget also proposes to raise the standard rate of excise duty for non-petroleum goods from 10 to 12 percent, the merit rate from 5 to 6 percent and the lower merit rate from 1 to 2 percent. Coal, fertilizers, mobile phones and precious metal jewellery will continue to attract only one percent lower merit rate. The budget proposes no change in the peak rate of customs duty of 10 percent on non-agricultural goods.