An indication to this effect was given by finance minister Yashwant Sinha in his address at a seminar on taxation organised by the Ficci here on Tuesday.

While responding to the demand of the Ficci for continuation of the special import duty (SAD) of 4 per cent and special customs duty of 5 per cent imposed by former finance minister P Chidambaram, Sinha said that "certain industries need little more time to adjust to international competition and will be given that time."

Sinha further argued that the "breathing time should be provided to the industry which was facing unfair competition from abroad." He also agreed with the industry's demand for strengthening the anti-dumping mechanism for speedier action.

According to Sinha, the issue of SAD and special customs duty needed to be looked from"philosophical and strategic angle." Stating the industry had no option but to face international competition, he said, "we cannot allow indigenous industry to die and will undertake only calibrated globalisation."

The minister also hinted at doing away with the zero-duty import in the forthcoming budget. Pointing out that the "we have misused our authority by granting undeserved concessions," the minister made a case for "floor duty rate." He also added that there was no reason for allowing import of a host of goods at zero rates.

Sinha said that the list for zero-duty imports will be carefully examined and added that distortions in rates with regard to import of raw material, intermediate goods and finished products would be rectified in the budget.

Referring to excise duty, the finance minister said, "My endeavour will be to have three rates -- mean rate, merit rate and demerit rate." He said that effort was being made to divided the goods accordingly on the basis of certain principles which will bedifficult to assail. The rationalisation of tax structure, he added, was being done in a big way.

The minister said that the department of revenue was working out the rates which will be announced in the budget to be presented on February 27. Sinha also added that efforts were being made to advance the budget presentation time from the usual 5 pm.

The three excise rates, he hoped, will also end the problem of classification. At present, people try to take advantage of multiple classification to pay duty at lower rates, Sinha said.

The minister also promised to relook at various exemptions being given to the industry. Many exemptions were likely to be done away with as part of the rationalisation of the tax structure.

Sinha also said that efforts will be made to simplify the language of the law to avoid the scope of interpretation. "Wherever necessary we will provide authoritative interpretation", he added.

As far as direct taxes were concerned, he said, the rates compare well with those prevailingin other countries. "Our endeavour will be to simplify them."

He further added that in case of direct taxes too, "we will re-examine the exemptions and see whether they are needed to be continued."

Referring to other issues, Sinha said that exports were an area of concern and steps would be taken to boost them.

Earlier, Ficci president Sudhir Jalan pleaded for excise cut for sectors like steel, cement, paper and said that 100 per cent modvat be available to the industry instead of 95 per cent at present.