In any case SAD is very low as compared to the domestic sales tax rates. In the context of structural reforms Mr Sinha leads the country towards a single rate regime. This takes India to the club of half the VAT countries of the world that have just one rate. To provide progressivity into the tax system, it resorts to a system of sumptuary excises, levied in other countries. The budget takes care of this by imposing excises over and above CenVAT on demerit goods.
Budget introduces lot more structural simplifications than the cosmetic reforms.
It allows credit for all inputs including capital goods. Likewise, it announces procedural simplifications that are crucial in improving governance of tax and removing corruption and hardship to the taxpayers. In fact, it does away to a great extent with the Inspector Raj. The NTP states that the Indian textile sector can produce cloth of good quality at acceptable prices and for an increasing share of the global market. It, however, denounces discriminatory taxation policies aimed at protecting one sector at the cost of the other, large scale tax evasion in the SSI, and mushroom growth of unorganised producers resorting to unfair competition.