New Delhi: In a virtual mini-Budget ahead of a possible Vote-on-Account and early Lok Sabha elections, Government today (Jan 8, 2004) slashed customs duties on various non-agricultural goods, cell phones, IT and electronics items and abolished domestic and foreign travel tax.

The concessions in indirect taxes, which would come into effect from tomorrow (Jan 9), were announced in a press note by the Government, which is expected to take a decision on early polls after the BJP's (Bharatiya Janata Party) National Executive meet in Hyderabad on January 11 and 12.

It reduced the customs duty on non-agricultural goods by five per cent to 25 per cent, abolished four per cent special additional customs duty and cut customs duty on IT and electronic products.

The customs duty on cellular phones has been reduced from 10 per cent to five per cent.

The excise duty on computers has been slashed by half to eight per cent.

Excise duty on Aviation Turbine Fuel has also been cut to eight per cent from 16 per cent.

Regarding direct taxes, the Government simplified procedures dispensing with filing of income tax returns for employees having a salary up to Rs 1.5 lakhs.

This new procedure will be implemented from April 1, 2004.

Pensioners will be exempt from the purview of 1/6 scheme, indicating that pensioners who don't have taxable incomes, need not file returns.

The 15 per cent Inland Air Travel Tax (IATT) and foreign travel tax of Rs 500 have been abolished.

Government has also reduced customs duty on power transmission and distribution projects to 10 per cent from 25 per cent, while that on electricity meters has been cut to 15 per cent from 25 per cent.

In the health sector, Government reduced customs duty on specific items like life saving bulk drugs, formulations and medical equipment to five per cent, which will be exempted from countervailing duty by way of excise duty exemption.

Customs duty on parts of artificial limbs and specified rehabilitation aids has been reduced to five per cent and exempted from countervailing duty.

Excise duty on medical, surgical, dental, and furniture items has been halved to eight per cent.