The government has changed the way excise duty is levied from January 25. Now the tax will be paid not on the assessable value declared by the manufacturer, but the MRP printed on the pack. This is aimed at tackling excise evasion and making pricing transparent to the consumer. The government also announced the abatement rate of 25% for printers, ink cartridges, modems, keyboards, mouse, monitors, 24% for set-top boxes, and 22.5% for personal computers. The abatment rate calculates how much of the MRP will be exempt from excise duty. This is to take care of costs incurred after leaving the factory and trader margins etc. For example, assume a product is made at a cost of Rs 8,000, sold for Rs 10,000 but carries an MRP of 15,000. If it attracts a 16% levy, the duty under the earlier regime would have been Rs 1,280 and the duty under the new regime would be Rs 2,400. But then the MRP here is inflated. If the MRP is revised to the actual selling price and an abatement of, say, 25% is effected, the new levy would be calculated on Rs 7,500.