b. Income tax rates proposed at 20% for earnings of Rs. 1-4 lakh and 30% for over Rs. 4 lakhs.

c. Tax threshold for senior citizens and widows at Rs. 1.5 lakh. d. Abolition of dividend tax, long-term capital gains tax and wealth tax. e.

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All exemptions on savings and other income, except for handicapped, be lifted. f. Phasing out tax breaks on home loans in 3 years. g. No standard deduction for salaried class. h.

Corporate tax rate be reduced to 30% from 36.75% for domestic companies and to 35% from 40% for foreign companies. i.

Abolition of Minimum Alternate Tax (MAT) j. Three slabs of custom duties-zero percent for life saving drugs, 10% for raw materials and intermediate goods and 20% for consumer durables, within 2 years. k. Expand to four slabs of custom duties by 2006-07-5% or raw materials, 8% on intermediaries, 10% on finished goods, 20% on consumer durables. Life saving drugs would continue to attract 0% duty even after 2006-07. l.

On excise duty front, it recommended 0% duty for life saving drugs, security on food items, 6% per processed food products, 20% for motor vehicles, air conditioners and created water and 14% for other items for demerit goods like tobacco and pan masala, it prescribed excise at 32%. m. CENVAT is brought down to 14%. The BJP’s committee headed by General Secretary Mr. Rajnath Singh rejected most of these recom­mendations and hence it seems very unlikely that much would be done by the NDA government to implement these recommendations.