FM cuts customs duty on petcoke, gypsum to 2.5%

Mon, Feb 28, 2011 at 14:20

The General Budget 2011-12 seeks to encourage domestic value addition vis-a-vis imports, to remove duty inversions and anomalies and to provide a level playing field for the domestic industry.

To this end, the Union Finance Minister, Pranab Mukherjee announced the following major proposals in the Budget presented in the Lok Sabha today:

•Full exemption for stainless steel scrap from basic customs duty;
•Reduction of import duties on specified raw material for the manufacture of syringes and needles to 5% basic and 4% CVD;

• Expanding the raw material list for manufacture of specified electronic components that are fully exempt from basic customs duty;

The Finance Minister, Mukherjee announced the enhanced rate of export duty for all types of iron ore at a unified 20% ad-valorem. Full exemption from export duty has been provided to iron ore pellets to encourage the value addition process for fines.

Announcing relief for the cement industry, Mukherjee said that the basic customs duty on two critical raw materials for this industry viz. petcoke and gypsum has been reduced to 2.5%.

Cash dispensers and their parts have been fully exempted from basic customs duty, to drive the financial inclusion agenda of the Government.