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<h1>Government Criticized for Not Lowering Service Tax Amid Economic Measures; Service Sector Feels the Pinch.</h1> The central government's economic measures have been criticized for not adequately addressing the service sector, as they reduced the peak excise duty rate from 14% to 10% but did not lower the service tax rate from 12%. This discrepancy is notable since it is the first time excise duty is less than the service tax. Despite the service sector being significantly impacted by the financial crisis and contributing significantly to foreign exchange earnings, the service tax remains higher. The budget changes have also led to a disparity where packaged software incurs an 8% excise duty, while customized software faces a 12% service tax.