New Delhi: From the Atlantic Salmon and hazelnuts to durian and some sweet biscuits, government proposes to withdraw Custom Duty relief and exemption for 97 products imported into the country. While the move is expected to increase costs, it may also encourage domestic manufacturing of many items.
Follows an announcement in phase Budget with finance minister Nirmala Sitharaman Clarifying that it is proposed to do away with certain old customs exemptions as part of an exercise to streamline the structure.
Now Central Board of Indirect Taxes and customs (CBIC) has released the list for public consultation with the feedback to be given in the next one month.
“…Last year, we started making changes in the customs structure, eliminating the 80 old exemptions… Now I propose to review over 400 old exemptions this year. We are going through extensive consultations. We will introduce a revised customs duty structure free from distortions, and from October 1, 2021. I also propose that from now on the validity of any new customs exemption is two years from the date of its issue, It will be till March 31,” the finance minister had said in his budget speech.
The list covers a wide range of products, including certain medicines and basic medicines, contraceptives, oilseeds, and seeds of flowers and vegetables, and some types of upholstery fabrics. A variety of machinery and components used by sectors such as textiles, power, oil and gas and electronics and telecommunications are also expected to see an impact as relief to these products is proposed.
The government has faced criticism over the past few years for raising tariffs, but in many cases, officials have argued that there is no justification for the relief.
Follows an announcement in phase Budget with finance minister Nirmala Sitharaman Clarifying that it is proposed to do away with certain old customs exemptions as part of an exercise to streamline the structure.
Now Central Board of Indirect Taxes and customs (CBIC) has released the list for public consultation with the feedback to be given in the next one month.
“…Last year, we started making changes in the customs structure, eliminating the 80 old exemptions… Now I propose to review over 400 old exemptions this year. We are going through extensive consultations. We will introduce a revised customs duty structure free from distortions, and from October 1, 2021. I also propose that from now on the validity of any new customs exemption is two years from the date of its issue, It will be till March 31,” the finance minister had said in his budget speech.
The list covers a wide range of products, including certain medicines and basic medicines, contraceptives, oilseeds, and seeds of flowers and vegetables, and some types of upholstery fabrics. A variety of machinery and components used by sectors such as textiles, power, oil and gas and electronics and telecommunications are also expected to see an impact as relief to these products is proposed.
The government has faced criticism over the past few years for raising tariffs, but in many cases, officials have argued that there is no justification for the relief.
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