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Centre may roll back duty relief on 97 products
Upholstery fabrics, certain works of art, printed circuit boards, certain chemicals and drugs, artificial kidney and contraceptives are part of a list identified by the CBIC for withdrawal of concessions.
The Union finance ministry is planning to withdraw import duty concessions on 97 items as part of its plans to reorganize the duty structure.
The Central Board of Indirect Taxes and Customs (CBIC) has sought public comments on the proposed move by August 10. Upholstery fabrics, certain works of art, printed circuit boards, certain chemicals and drugs, artificial kidney and contraceptives are part of a list identified by the CBIC for withdrawal of concessions.
The proposed rejig in duty structure was first announced by finance minister Nirmala Sitharaman in her budget for FY22. The Centre expects the move to help boost local production of goods and bring down imports, while ensuring easy access to raw material and reduce reliance on imported finished items.
The FY22 budget had raised import duty on cotton, plastic, leather, gems and jewellery, and electronic goods, but had slashed duty on key raw materials such as naphtha to lower domestic producers’ cost.
This is expected to complement the incentives given to locally produce automobiles and auto components, electronics and technology and telecom products. Incentives for new factories and a higher tariff on imported value-added products will help local manufacturers have an edge over low-cost imports.
The government intends to review more than 400 old customs duty exemptions, and to put a revised customs duty structure in place from October.
The CBIC said people may suggest a review of the listed notification, amendments in the wordings in the note for greater clarity, consolidation and other relevant factors.
“Importers, exporters, domestic industry, trade associations, all stakeholders, especially in international trade, and the public at large are invited to give pertinent views on the subject for consideration by the government,” it added.
