<h1>2008-09 Budget: CENVAT Cut to 14%, Excise Duty Reduced on Foods and Vehicles, Increased on Cigarettes and Software.</h1> The 2008-09 budget introduced several changes to the Central Excise duties. The general CENVAT rate was reduced from 16% to 14%. Specific reductions include excise duty on prepared foods and breakfast cereals from 16% to 8%, and full exemptions on certain items like coffee, tea pre-mixes, and tender coconut water. Excise duty on non-filter cigarettes increased significantly. Various goods, including motor vehicles, hybrid vehicles, and specific packaging materials, saw duty reductions. Excise duty on packaged software increased from 8% to 12%. The National Calamity Contingent Duty was imposed on mobile phones at 1%.